Dollar king flexing muscles ahead of key US events/data this week - ANZ
|Analysts at ANZ explained that in what was a quiet night, the USD’s firmer tone re-emerged ahead of tomorrow’s Humphrey-Hawkins testimony and US January CPI data on Thursday.
Key Quotes:
"The dollar may also be benefiting as market sentiment towards the Trump administration seems to be more settled in recent days. That follows re-affirmation of support for the One China Policy, a positive Summit with Japan’s PM Abe, and expectations of details on Trump’s tax initiatives later this month.
In anticipation that Yellen should acknowledge the ongoing improvement in inflation and the labour market, bond yields edged higher, with the yield on the 10-year note rising 3bps to 2.44%. That was despite a weak showing for oil as WTI for near-term delivery fell 1.9% to USD52.8/bbl. Equity markets had a good night as growth expectations remain optimistic.
The S&P 500 rose 0.5%, the DAX was up 0.9% and the FTSE 100 rose 0.3%. Gold spot fell 0.8% to USD1224/oz."
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.