Dollar ends higher on rebound in US yields
|Dollar ends higher against majority its peers on Monday as concerns over the new Covid variant Omicron eased and due to a rebound in U.S. Treasury yields.
Versus the Japanese yen, dollar traded with a firm undertone and gained to 113.07 at Asian open before briefly retreating to 112.86. The pair then rose to 113.37 in European morning due partly to cross-selling in jpy and then ratcheted higher to an intra-day high of 113.55 in tandem with US yields in New York afternoon.
The single currency remained under pressure in New Zealand and fell to 1.1275 at European open before rebounding strongly to 1.1309 in Europe. Later, the pair erased its gains and fell to session lows of 1.1267 in New York morning before staging a short-covering bounce on falling US yields.
The British pound jumped from 1.3220 in New Zealand to 1.3257 before retreating to 1.3223 at European open on broad-based rebound in usd. Despite rising to an intra-day high at 1.3286 ahead of New York open on cross-buying in sterling, price then retreated to 1.3231 on profit-taking before rebounding to 1.3267 near the close.
Reuters reported Bank of England Deputy Governor Ben Broadbent said on Monday that inflation in Britain might "comfortably exceed" 5% in April next year and the country's tight labour market was likely to be a more persistent source of inflation.
"The aggregate rate of inflation is likely to rise further over the next few months and the chances are that it will comfortably exceed 5% when the Ofgem (regulator) cap on retail energy prices is next adjusted, in April," Broadbent said in a speech.
Data to be released on Tuesday:
Australia AIG services index, house price index, RBA interest rate decision, Japan all household spending, coincident index, leading indicator, China exports, imports, trade balance, Swiss unemployment rate, U.K. Halifax house prices, Germany industrial output, ZEW economic sentiment, ZEW current conditions, France current account, trade balance, imports, exports, EU employment, GDP, ZEW survey expectation, U.S. international trade balance, labor costs, productivity, redbook, Canada trade balance, exports, imports and Ivey PMI.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.