{"id":132921,"date":"2021-07-21T07:57:17","date_gmt":"2021-07-21T07:57:17","guid":{"rendered":"https:\/\/precoinnews.com\/?p=132921"},"modified":"2021-07-21T07:57:17","modified_gmt":"2021-07-21T07:57:17","slug":"virus-scare-puts-dollar-near-years-highs-as-ecb-looms","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/virus-scare-puts-dollar-near-years-highs-as-ecb-looms\/","title":{"rendered":"Virus scare puts dollar near year's highs as ECB looms"},"content":{"rendered":"

SINGAPORE (Reuters) – The dollar stood on the verge of fresh year-to-date peaks on Wednesday, as jitters about surging virus infections buttressed gains built on higher interest rate expectations, with investors waiting on the European Central Bank for their next cue.<\/p>

FILE PHOTO: South Korean won, Chinese yuan and Japanese yen notes are seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS\/Kim Hong-Ji<\/figcaption>

The euro touched its lowest since April on Tuesday and, at $1.1772 in Asia, was not far above the year\u2019s nadir at $1.1704. It might find support if the ECB fails to meet expectations for a dovish tweak to rates guidance at its Thursday meeting. But if that is delivered, it could open the way for further weakness.<\/p>\n

\u201cThe implication is the ECB\u2019s monetary policy will now remain ultra easy for even longer which is a headwind to the euro,\u201d said Commonwealth Bank of Australia strategist Kim Mundy.<\/p>\n

Other majors likewise faced difficulty escaping multi-month lows leaving sterling, the Canadian, Australia and New Zealand dollars to trade under pressure in the Asia session.<\/p>\n

\u201cThe U.S. dollar does seem to have quite an undertow of support,\u201d said Westpac analyst Sean Callow in Sydney.<\/p>\n

The dollar index added 0.1% to 93.033 and could test its March peak of 93.439, Callow said, as the currency seemed to find help from risk aversion when investors were nervous and support from rate hike expectations when they were not.<\/p>\n

\u201cThe general mood on the dollar looks as though it would take a lot to derail the basic narrative of the dollar being in fairly good shape from here to the Jackson Hole conference,\u201d he added, referring to the August symposium in Wyoming where the Federal Reserve may announce tapering of its bond purchases.<\/p>\n

\u201cFor the time being you\u2019d probably just prefer to keep long dollars for the next few weeks.\u201d<\/p>\n

Elsewhere the Australian dollar took a knock from soft retail sales data and the expectation of more weakness in the near term as much of the country is locked down to slow coronavirus transmission. It was off 0.3% at $0.7310.<\/p>\n

The New Zealand dollar was parked at $0.6913 and the Canadian dollar began to hand back some of the bounce it managed overnight.<\/p>\n

The dollar was steady against the safe-haven yen, which has also been advancing broadly while concerns grow about surging global coronavirus infections and the obstacle they could present to economies on the path to pandemic recovery.<\/p>\n

The yen was last at 109.87 per dollar and 129.37 per euro.<\/p>\n

The seven-day average of daily new infections is at its highest since May and the corresponding average of reported deaths is also on the rise.<\/p>\n

Sterling faces pressure as cases soar while England drops most social curbs.<\/p>\n

Sterling was last at $1.3616, below its 20-day and 200-day moving averages and just a fraction over Tuesday\u2019s five-month low. The Singapore dollar also traded near Tuesday\u2019s eight-month low after the reimposition of some curbs.<\/p>\n

With a light data calendar on Wednesday, Thursday\u2019s ECB meeting looms largest on the horizon. A dovish tone is expected after President Christine Lagarde foreshadowed a guidance tweak during an interview last week.<\/p>\n

The ECB announced a new strategy which allows the bank to tolerate inflation above its 2% target and Lagarde said policy guidance would be revisited to demonstrate the bank\u2019s commitment to the new goal.<\/p>\n

\u201cNo change in the ECB bias is unlikely to be enough to send the euro higher,\u201d analysts at ING said in a note. \u201cAt the same time, any ECB shift towards the dovish interpretation of the strategic review would underscore the recent downward euro\/dollar trend.\u201d<\/p>\n

In the digital space, cryptocurrencies clawed back Tuesday\u2019s losses to drag bitcoin from a one-month low and back over $30,000.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SINGAPORE (Reuters) – The dollar stood on<\/p>\n","protected":false},"author":3,"featured_media":132920,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nVirus scare puts dollar near year's highs as ECB looms - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/virus-scare-puts-dollar-near-years-highs-as-ecb-looms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Virus scare puts dollar near year's highs as ECB looms - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"SINGAPORE (Reuters) – The dollar stood on\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/virus-scare-puts-dollar-near-years-highs-as-ecb-looms\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-21T07:57:17+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/07\/Virus-scare-puts-dollar-near-years-highs-as-ECB-looms.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/virus-scare-puts-dollar-near-years-highs-as-ecb-looms\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/virus-scare-puts-dollar-near-years-highs-as-ecb-looms\/\",\"name\":\"Virus scare puts dollar near year's highs as ECB looms - 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