Category: Forex

Riksbank’s Calm Over Inflation Hurts Swedish Crown; Yen Struggles

LONDON—The Swedish crown was hurt by the Riksbank’s dovish stance on Thursday, while other currency market moves were small as investors awaited key data on U.S. inflation for clues on the U.S. Federal Reserve’s policy-tightening trajectory. Investors’ appetite for riskier assets has been hurt so far this year by expectations that the Federal Reserve will…


Euro Edges Up as Traders Seek Clues on Possible ECB Rate Hike

LONDON—The euro edged up on Wednesday but was off Friday’s three-week high, as traders looked for clues as to when the European Central Bank will hike interest rates. The dollar was little changed, a day before the release of U.S. consumer price data that may offer new indications about the pace of the Federal Reserve’s…


Euro Pulls Back From 3-week Highs as Italian Real Yields Approach Zero

LONDON—The euro weakened on Tuesday after European Central Bank President Christine Lagarde tried to rein in interest rate hike expectations that lifted the currency to a three week-high last week. The ECB’s hawkish twist last week took markets by surprise and sent yields on peripheral eurozone debt surging as investors worried about the impact of…


Euro Drops After US Jobs Data Fuels Dollar Rebound

LONDON—The euro dipped on Monday after a surge last week that followed a hawkish shift by the European Central Bank, as traders turned to the dollar betting the jump in U.S. jobs created in January could lead to faster Federal Reserve rate hikes. The European common currency dropped 0.2 percent to as low as $1.1415,…


Euro Adds Gains After ECB’s ‘Ground-Breaking’ Hawkish Turn

LONDON—The euro was on track on Friday for its best week versus the dollar since the COVID-19 pandemic hit, after a hawkish turn by the European Central Bank (ECB) rippled through markets. Rampant inflation across many global economies has forced central banks to tighten monetary policies that had been dramatically loosened to help consumers and…


Euro Jumps After Hawkish Comments From ECB’s Lagarde

The euro jumped against the dollar on Thursday after comments from ECB president Christine Lagarde fuelled expectations of faster monetary policy tightening, although the central bank confirmed its guidance for interest rates and its bond purchase program. Lagarde acknowledged that inflation was running hotter than expected and with risks tilted to the upside, but continued…


Dollar to Stay Dominant, but Big Fed Push Needed to Climb Higher: Poll

BENGALURU—The U.S. dollar will reign supreme for at least another 3–6 months, a Reuters poll of strategists found, saying it will take a significant change in market expectations for Federal Reserve rate hikes to push it higher. Indeed, while the dollar was not expected to make any significant headway from current levels, it was forecast…


Dollar Falls Further From High; Australian Dollar Recovers

LONDON—The dollar fell again on Tuesday, while risk-sensitive currencies such as the British pound gained and the Australian dollar recovered from an overnight drop. After falling nearly 5 percent in January, world equities started February slightly firmer and currency markets have also changed course. After hitting a 19-month high last week, the U.S. dollar index…


Dollar Consolidates Gains as US Yield Curve Continues to Flatten

LONDON—The U.S. dollar consolidated gains on Monday after hitting a 1–1/2 year high on Friday as the Treasury yield curve extended a three-week flattening streak following hawkish comments by a Federal Reserve official. With the Fed clearly signaling its intent to raise interest rates as early as March after its meeting last week, money markets…


Dollar Set for Biggest Weekly Rise in 7 Months on Rate Bets

LONDON—The dollar consolidated gains on Friday and was on track for its biggest weekly rise in seven months as bets of higher interest rates fuelled the U.S. unit’s gains versus rivals. With money markets pricing 32 bps of rate hikes in March and as many as 124 bps in cumulative increases before the end of…