{"id":135163,"date":"2021-08-11T07:14:16","date_gmt":"2021-08-11T07:14:16","guid":{"rendered":"https:\/\/precoinnews.com\/?p=135163"},"modified":"2021-08-11T07:14:16","modified_gmt":"2021-08-11T07:14:16","slug":"dollar-moves-toward-years-highs-ahead-of-inflation-test","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/dollar-moves-toward-years-highs-ahead-of-inflation-test\/","title":{"rendered":"Dollar moves toward year's highs ahead of inflation test"},"content":{"rendered":"

SINGAPORE (Reuters) – The dollar was poised just below this year\u2019s high against the euro on Wednesday and it struck a five-week peak against the yen ahead of U.S. inflation data, with the prospect a strong number could pressure the Federal Reserve to wind back policy support.<\/p>

FILE PHOTO: U.S. one dollar and Chinese Yuan are seen in this illustration taken May 7, 2021. REUTERS\/Dado Ruvic\/Illustration<\/figcaption>

The greenback has enjoyed a lift from last week\u2019s impressive U.S. jobs data and from remarks by Fed officials about tapering bond buying and, eventually, raising rates, sooner than policymakers elsewhere.<\/p>\n

Six straight sessions of gains against the euro sent the common currency to its lowest since late March on Tuesday. At around $1.1718 through the Asia session, the year\u2019s low of $1.1704 is now within range. The dollar index, at 92.139, is at a three-week top and near its 2021 high of 93.439.<\/p>\n

The inflation data may determine whether it tests those peaks, with a hot reading likely to stoke hike expectations and provide support, while downside surprise could reel those in.<\/p>\n

The yen, which has dropped for five consecutive sessions against the dollar, fell marginally to 110.69 per dollar in early trade, its lowest since mid July. The dollar also touched a two-week high on sterling $1.3820 and held by a one-month high of 0.9234 Swiss francs.<\/p>\n

\u201cA stronger than expected print may add modestly to the dollar and (Treasury yields),\u201d analysts at Maybank in Singapore said in a note.<\/p>\n

\u201cIf the CPI print unexpectedly surprised to the downside, then the pullback in the dollar and Treasury yield may be asymmetrically larger than the upside risks.\u201d<\/p>\n

Economists polled by Reuters expect the pace of inflation to have eased slightly in July, with headline consumer prices rising 0.5% for the month compared with 0.9% a month earlier and the annual pace at 5.3%.<\/p>\n

Two Federal Reserve officials said on Monday that inflation is already at a level that could satisfy one leg of a test for the beginning of interest rate hikes – though a third, Charles Evans, demurred on Tuesday.<\/p>\n

At the same time, investor sentiment is sagging in Europe, with a survey showing a third straight month of deterioration in Germany, as rising global COVID cases keep markets nervous.<\/p>\n

\u201cInvestors have to take on board the possibility of news on Fed tapering at a time when COVID is still very apparent in various parts of the world,\u201d said Rabobank analyst Jane Foley.<\/p>\n

\u201cThe consequence of this is likely to be a firmer dollar,\u201d she added, especially if the euro breaches its 2021 low.<\/p>\n

Besides the inflation data, which is due at 1230 GMT, a speech at 1600 GMT by Federal Reserve Bank of Kansas City President Esther George will be closely watched, as will the troubling global spread of the Delta coronavirus variant.<\/p>\n

South Korea reported a record number of COVID-19 cases on Wednesday, while outbreaks in China, through Southeast Asia and in Australia grow steadily. Hospitals in Texas and Florida are filling up with patients.<\/p>\n

The Chinese yuan touched a two-week low in offshore trade, before steadying onshore, while the South Korean won also made a two-week trough. [CNY\/][.KS].<\/p>\n

A measure of consumer sentiment in Australia slid to a one-year low as lockdowns in major cities weighed, and the Australian dollar slipped a little.<\/p>\n

The Australian dollar last bought $0.7338, while the New Zealand dollar sat at $0.7003. [AUD\/]<\/p>\n

Expectations the Reserve Bank of New Zealand will lift interest rates next week are keeping a floor under the kiwi.<\/p>\n

\u201cWe are quite bullish on the kiwi,\u201d said Shafali Sachdev, head of FX in Asia at BNP Paribas Wealth Management, who has a 12-month price target of $0.75 for the currency.<\/p>\n

\u201cRBNZ seems ahead of the curve…when it comes to hiking and has signalled that quite clearly. This is going to catch up with the kiwi.\u201d<\/p>\n

========================================================<\/h2>\n

Currency bid prices at 0459 GMT<\/p>\n

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid<\/p>\n

Previous Change<\/p>\n

Session<\/p>\n

Euro\/Dollar<\/p>\n

$1.1718 $1.1721 -0.03% -4.09% +1.1725 +1.1712<\/h2>\n

Dollar\/Yen<\/p>\n

110.6750 110.6000 +0.05% +7.13% +110.6850 +110.5600<\/h2>\n

Euro\/Yen<\/p>\n

129.68 129.58 +0.08% +2.17% +129.7300 +129.5600<\/h2>\n

Dollar\/Swiss<\/p>\n

0.9228 0.9228 -0.01% +4.30% +0.9233 +0.9221<\/h2>\n

Sterling\/Dollar<\/p>\n

1.3828 1.3839 -0.09% +1.21% +1.3839 +1.3820<\/h2>\n

Dollar\/Canadian<\/p>\n

1.2528 1.2520 +0.08% -1.60% +1.2531 +1.2515<\/h2>\n

Aussie\/Dollar<\/p>\n

0.7338 0.7349 -0.14% -4.61% +0.7349 +0.7335<\/h2>\n

NZ<\/h2>\n

Dollar\/Dollar 0.7003 0.7007 -0.04% -2.46% +0.7013 +0.6998<\/p>\n

All spots<\/p>\n

Tokyo spots<\/p>\n

Europe spots<\/p>\n

Volatilities<\/p>\n

Tokyo Forex market info from BOJ<\/p>\n

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

SINGAPORE (Reuters) – The dollar was poised<\/p>\n","protected":false},"author":3,"featured_media":135162,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"\nDollar moves toward year's highs ahead of inflation test - 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\/dollar-moves-toward-years-highs-ahead-of-inflation-test\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dollar moves toward year's highs ahead of inflation test - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"SINGAPORE (Reuters) – The dollar was poised\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/markets\/dollar-moves-toward-years-highs-ahead-of-inflation-test\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-11T07:14:16+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\/08\/Dollar-moves-toward-years-highs-ahead-of-inflation-test.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=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/markets\/dollar-moves-toward-years-highs-ahead-of-inflation-test\/\",\"url\":\"https:\/\/precoinnews.com\/markets\/dollar-moves-toward-years-highs-ahead-of-inflation-test\/\",\"name\":\"Dollar moves toward year's highs ahead of inflation test - 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