Forex Today: Dollar and yields ease, Chinese stock intervention provides limited calm
|Here is what you need to know on Tuesday, March 9:
Markets are mixed on Tuesday after Chinese authorities intervened to shore up stock markets. The dollar is edging lower as bond yields are off their highs while Bitcoin is extending its gains.
US ten-year bond yields are hovering around 1.56%, off the highs above 1.60% recorded on Monday and allowing the dollar to edge lower. Gold is also licking its wounds but remains below $1,700. Wednesday's bond auction and inflation figures are awaited.
Treasury Secretary Janet Yellen said that the US economy should reach full employment in 2022, earlier than it would if the president's $1.9 trillion covid relief package does not pass. The House is set to vote on the Senate's modified legislation on Tuesday or on Wednesday. Yellen dismissed concerns about inflation.
Intervention: A sell-off in Chinese stocks prompted authorities to jump into markets to scoop up shares and help stabilize markets. The downfall came after tech equities suffered all over the world. NASDAQ futures are higher after suffering significantly on Monday.
EUR/USD has been extending its climbdown as Europe's vaccination campaign remains sluggish and after data from the European Central Bank showed that the pace of bond-buys remains slow. The ECB convenes on Thursday. Updated growth figures for the eurozone are awaited on Tuesday.
GBP/USD is changing hands at above 1.3830 after Bank of England Governor Andrew Bailey reiterated that negative rates are off the cards.
Virus: Italy has surpassed the grim milestone of 100,000 COVID-19 deaths as cases are rising once again. The US Center for Disease Control and Prevention said that vaccinated people can gather unmasked in small groups.
Bitcoin has been extending its climb, changing hands above $53,000. Ethereum is above $1,800 and XRP near $0.50.
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