The dollar climbed against emerging-market currencies and held gains versus major peers amid speculation over the timeline for U.S. interest-rate increases. Japan’s Nikkei 225 Stock Average extended its longest rally this year while Treasuries and nickel retreated.
The greenback gained at least 0.1 percent versus the currencies of South Korea, Malaysia and Thailand by 9:59 a.m. in Tokyo, with the yen near a more-than four-month low and the Bloomberg Dollar Spot Index holding its highest close since February. The Nikkei 225 jumped 0.7 percent in a ninth day of gains, the most since December, while Korean shares fell. Standard & Poor’s 500 Index futures were little changed after the gauge neared a record in New York. Ten-year Treasury yields rose a fourth day as nickel dropped 0.4 percent in London.
The Federal Reserve raised the possibility of increasing U.S. rates sooner than anticipated in minutes from their July meeting released yesterday, while also acknowledging ongoing slack in the labor market. The minutes set the stage for Chair Janet Yellen’s address to global central bankers later this week. Manufacturing is in focus today, with gauges of factory output in China and Japan due, along with data for the euro area and the U.S. A court rules on Indonesia’s election result.
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EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.