FOREX-Dollar eases, Yuan to 5-month high as Biden-Xi talks appear friendly

Band Tom Westbrook

SYDNEY, November 16 (Reuters)The dollar eased largely against riskier currencies, and the yuan hit a five-month high on Tuesday, as talks between U.S. and Chinese leaders appeared to have begun amicably, as traders waited for the talks. looming US retail sales data.

The euro EUR = EBS Also hit a 16-month low and rose nearly 0.2% to $ 1.1383 as it heals wounds from a beating on Monday amid concerns over COVID-19 outbreaks and declining expectations of rate hikes from the head of the European Central Bank.

Calling US President Joe Biden an “old friend,” his Chinese counterpart Xi Jinping said their countries should increase communication and cooperation. Both leaders stressed their responsibility to avoid conflict in opening remarks.

Halfway through the talks, the yuan CNY = CFXS had reached its highest level since June in onshore trading at 6.3666 per dollar. The risk-sensitive Australian and New Zealand dollars also rose around 0.2% each, while the safe haven yen eased slightly.

“Xi called Biden ‘my old friend’ and said the two countries should work together,” said Qi Gao, Asia FX strategist at Scotiabank. “Therefore, the situation after the meeting should be better,” he said, helping the yuan and other currencies sensitive to the tone of US-China relations.

The Aussie also ignored more jaws from central bank chief Philip Lowe who, in a speech, again pushed market prices back for hikes as early as 2022, arguing that inflation was likely to be well behind. compared to peaks seen elsewhere.

The Australian AUD = D3 traded just above its 50-day moving average at $ 0.7368. Swap markets are still valued at 100 basis points up by early 2023. RB WATCH

The kiwi NZD = D3, which expects a central bank meeting in New Zealand next week, climbed to $ 0.7060 with the mood largely positive in Asia. EUR /

The yen fell slightly against the euro and the dollar, last trading at 114.16 yen to the dollar JPY = EBS and 129.95 yen per euro EURJPY =.

DUE SALES DATA

US retail sales data is due at 1:30 p.m. GMT and follows a surprisingly weak reading in consumer sentiment last week and a surprisingly strong survey of business conditions, which helped lift returns. from the Treasury Monday.

Economists expect growth to accelerate month-on-month to 1.2% and an upside surprise would further underline the contrast across the Atlantic where the President of the European Central Bank Christine Lagarde underlined the fragility of the economy .

The common currency slumped to a 16-month low at $ 1.1356 following his comments pushing market expectations of tightening and lacking chart support down to around $ 1.12. The decline propelled the US dollar index = USD to 2021 high of 95.595.

“We expect the ECB’s policy cautiousness to limit the prospects for the euro’s recovery against the dollar in the coming months,” said Jane Foley, senior currency strategist at Rabobank.

“Our current mid-2022 forecast for EUR / USD at $ 1.14 looks out of date… we will revise our forecast later in the week.”

The Tone Sink across the Channel sent the euro to its steepest drop against the pound in six months on Monday as Bank of England Governor Andrew Bailey told a parliamentary committee he was “very uncomfortable” about inflation.

The British pound remained stable at 84.71 pence to the euro EURGBP = and a higher fraction on the dollar GBP = D3 at $ 1.3433 on Monday. GBP /

The chief of Canada’s central bank, Tiff Macklem, was even more outspoken and said that “we are getting closer” to the hikes in an opinion piece, pushing the Canadian dollar to a four-and-a-half-year high against the euro EURCAD =.

Bitcoin BTC = BTSP drifted down from last week’s all-time high and slipped around 4% to a 10-day low of $ 60,700 and cryptocurrency ether ETH = BTSP was also off highs and fell 5% to $ 4,320.

=================================================== ======

Quotes for currency offers at 0357 GMT

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Euro dollar

EUR = EBS

$ 1.1381

$ 1.1367

+ 0.12%

-6.85%

+1.1386

+1.1360

Dollar / Yen

JPY = EBS

114.1850

114.1850

-0.04%

+ 10.50%

+114.3050

+114.1400

Euro / yen

EURJPY = EBS

129.94

129.74

+ 0.15%

+ 2.38%

+130.0700

+129.7000

Dollar / Switzerland

CHF = EBS

0.9240

0.9246

-0.09%

+ 4.42%

+0.9257

+0.9238

Pound sterling / dollar

GBP = D3

1.3431

1.3415

+ 0.11%

-1.70%

+1.3437

+1.3412

Canadian dollar

CAD = D3

1.2501

1.2511

-0.08%

-1.83%

+1.2517

+1.2493

Australia / Dollar

AUD = D3

0.7357

0.7348

+ 0.14%

-4.35%

+0.7368

+0.7343

New Zealand dollar / Dollar

NZD = D3

0.7055

0.7045

+ 0.16%

-1.74%

+0.7063

+0.7040

All spots FX =

Tokyo spots AFX =

Points of Europe EFF =

Volatilities VOLFX =

BOJ Tokyo Forex Market Information TKYFX

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Edited by Shri Navaratnam and Jacqueline Wong)

(([email protected]; +65 6973 8284;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Source link

Comments are closed.