Dollar Down, But Losses Capped as Markets Enter “Twilight Zone” By

© Reuters.

By Gina Lee – The dollar was down on Wednesday morning in Asia, but remained near its strongest levels in 2021. investor nervousness about the U.S. Federal Reserve beginning asset tapering as economic challenges start to emerge, all capped losses for the safe-have asset.

The that tracks the greenback against a basket of other currencies inched down 0.06% to 93.722 by 12:56 AM ET (4:56 AM GMT).

The pair inched up 0.02% to 111.52. Japan’s incumbent Liberal Democratic Party will vote for a leader, likely to be the country’s next prime minister, on Wednesday.

The pair edged up 0.20% to 0.7250 and the pair inched down 0.06% to 0.6951.

The pair edged up 0.12% to 6.4672 and the pair edged up 0.11% to 1.3548.

Benchmark 10-year U.S. Treasury yields were up 25 basis points in five sessions to 1.5548% as the Fed preps to begin asset tapering before the end of 2021 and inflation worries continue.

“Compared to the unencumbered optimism at the start of 2021, it is a twilight zone for markets as the year approaches its end,” Deutsche Bank (DE:) analysts said in a note.

“Persistently stagflationary dynamics, i.e. a lower growth but a hawkish Fed, leave little room for a dollar downtrend,” the note added.

Surging energy prices, concern about the growth outlook in China, with developer China Evergrande Group facing its latest bond interest payment interest on Wednesday, and rolling power outages that are impacting output all remained on investors’ radars.

The pound took a particular beating overnight due to concerns over the economic impact of a shortage of gas and a scramble for fuel.

The Reserve Bank of New Zealand (RBNZ) is due to hand down its in the following week and is widely expected to hike interest rates.

“NZD/USD remains stuck around $0.7000, as the effect of the hawkish RBNZ is offset by increasing expectations of the Fed,” Westpac analyst Imre Speizer told Reuters.

Meanwhile, European Central Bank (ECB) President Christine Lagarde, Fed Chairman Jerome Powell, Bank of England Governor Andrew Bailey, and Bank of Japan Governor Haruhiko Kuroda will participate in an ECB forum later in the day.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Share Market Today