Connect with us

Hi, what are you looking for?

The Smart Citizen Report

BREAKING NEWS

Dollar Edges Higher; Fed Minutes, Chairman Choice in Focus

Forex2 hours ago (Nov 22, 2021 02:57AM ET)

(C) Reuters.

By Peter Nurse

Investing.com – The dollar traded higher Monday, testing the highs of last week as the euro suffered from growing anxiety over the impact of surging Covid-19 infections in Europe.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 96.153, just shy of last week’s 16-month high of 96.266.

USD/JPY rose 0.2% to 114.22, GBP/USD edged lower to 1.3448, and the risk-sensitive AUD/USD rose 0.3% to 0.7253.

The dollar received a boost on Friday after comments by Federal Reserve officials Richard Clarida and Christopher Waller pointed to the potential of a faster pace of stimulus tapering amid a robust recovery and heated inflation.

The foreign exchange market has become fixated on the Fed’s timetable for phasing out its bond purchases as a shorter phase-out raises the possibility of earlier interest rate increases. Currently the market is priced for the U.S. central bank to start hiking rates by the middle of next year.

“We find increasing evidence of a new leg of inflationary pressures in the U.S., increasing our conviction of a hawkish shift from the Fed during 2022,” said analysts at Nordea, in a note.

The Fed will publish the minutes of its November meeting, in which policymakers decided the U.S. economy was strong enough to start scaling back its pandemic-era asset purchase program, on Wednesday.

The same day sees a massive data dump, including the core PCE price index, rumored to be the Fed’s favored inflation gauge, while a lot of attention will be on whether the White House decides to keep incumbent Fed Chair Jerome Powell in place for another term or promote current Fed Governor Lael Brainard.

Elsewhere, EUR/USD fell 0.2% to 1.1265, to a new 16-month low as Austria became the first country in western Europe to reimpose a full national lockdown to combat the Covid-19 virus.

Europe has again become the epicentre of the pandemic, with Germany, Europe’s largest economy, refusing to rule out the possibility of another lockdown on Friday, and riots breaking out in Belgium and the Netherlands over the introduction of more restrictions.

USD/TRY fell 0.3% to 11.1960, with the lira attempting to rebound after suffering one of its worst days in three years on Thursday after the central bank cut interest rates again despite rocketing inflation.

Dollar Edges Higher; Fed Minutes, Chairman Choice in Focus

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.

Join Our Time-Limited Free Subscription! Get Latest Trading Ideas, Business Info and Market Stocks.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

BREAKING NEWS

World37 minutes ago (Oct 31, 2021 09:05AM ET) (C) Reuters. FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington,...

Investing

Sign In/Free Sign Up 0 Economy33 minutes ago (Nov 03, 2021 12:10AM ET) WELLINGTON (Reuters) – New Zealand has ratified the Regional Comprehensive Economic...

Analytics

4/4 (C) Reuters. FILE PHOTO: Campaign signs for Democrat Terry McAuliffe and Republican Glenn Youngkin stand together on the last day of early voting...

Analytics

Politics31 minutes ago (Oct 28, 2021 03:12PM ET) 2/2 (C) Reuters. FILE PHOTO: U.S. President Joe Biden delivers remarks on his Build Back Better...

BREAKING NEWS

Sign In/Free Sign Up 0 World32 minutes ago (Nov 02, 2021 08:11PM ET) WASHINGTON (Reuters) – Democrat Shontel Brown defeated Republican Laverne Gore in...

Investing

(C) Reuters. FILE PHOTO: People line up at a coronavirus disease (COVID-19) testing at a mobile testing van in New York City, U.S., August...

Investing

2/2 (C) Reuters. The U.S Capitol seen at night from Pennsylvania Avenue in Washington, U.S., October 24, 2021. REUTERS/Sarah Silbiger/File Photo 2/2 By Trevor...

Investing

Economy52 minutes ago (Nov 01, 2021 01:51PM ET) (C) Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock...

Disclaimer: TheSmartCitizenReport.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.

The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

© Copyright 2021,TheSmartCitizenReport.com All Rights Reserved