The dollar held a gain against most of its 16 major counterparts as investors sought haven assets amid tension in Ukraine and before Federal Reserve Chair Janet Yellen speaks today.
The greenback's appeal as the world's reserve currency was enhanced as deadly clashes in Ukraine prompted the U.S. and European Union to consider adding to sanctions against Russia. Australia's dollar erased an earlier loss after a report showed growth was stronger than forecast in China, the South Pacific nation's biggest trading partner. The yen fell as Japanese stocks rose the most in almost two months. New Zealand's kiwi slid a second day after inflation slowed and dairy prices fell.
"Ukraine is bubbling under, and it has huge potential to be mismanaged by Europe and the U.S.," said Derek Mumford, director at Rochford Capital, a currency risk-management company in Sydney. Russian President Vladimir Putin may be "pushed into a corner and will have to invade, which won't be good for Europe, but is potentially good for the U.S. dollar."
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.