The Dollar rose broadly on Wednesday as a better-than-expected report on US durable goods orders for April bolstered the view the Federal Reserve may keep interest rates on hold or even raise them by year-end. Demand for the greenback also rose after reports showed rising German inflation and Oil prices eased from recent record highs. Oil prices traded well below last week’s record at $135.09 a barrel.
Yesterday German inflation May data supported expectations for the ECB to retain its hawkish, inflation-fighting stance despite signs of an economic slowdown seen in recent sentiment surveys fro (more…)
The Dollar rallied on Thursday, rising to a three-month high against the Yen, on data showing the US economy grew in Q1 faster than previously estimated and as hawkish Federal Reserve comments boosted expectations for an interest rate increase this year.
The hawkish comments from Dallas Fed President Fisher and Minneapolis Fed President Gary Stern, who said that the Fed must quit its monetary easing campaign at some point, suggested that inflation risks were not far away from policymakers’ minds.
Data on Wednesday showing US durable goods orders fell by a smaller-than-expected 0.5% last month (more…)
The Dollar fell against a basket of currencies on Monday, breaking a three-day rally, as buyers retreated to the sidelines ahead of key economic data and awaiting the Federal Open Market Committee (FOMC) statement and rate decision.
The policy-setting FOMC is widely expected to cut the benchmark overnight lending rate by only 25bp to 2%.
ECB President Jean-Claude Trichet and Governing Council member Yves Mersch both said risks to price stability remained on the upside, with Trichet adding that there were no grounds for complacency. Their comments suggested the ECB is not ready to start cuttin (more…)
The Dollar rose to an almost one-month high versus the Euro on Tuesday, buoyed by growing views the Federal Reserve is ready to signal a pause in its interest rate cutting-campaign and by weak European economic data.
Analysts expect the FOMC to cut the benchmark lending rate by 25bp to 2% and indicate a pause for now, after an aggressive exercise that has cut rates by 300bp since mid-September.
While markets are expecting a slightly hawkish tone in the FOMC’s statement accompanying the rate decision, poor economic data from the euro zone raised doubts on the ECB’s ability too maintain its tou (more…)
