Dollar marches on, Trump trade momentum undimmed

By Kevin Buckland and Alun John

TOKYO/LONDON (Reuters) -The U.S. dollar continued its relentless march higher on Thursday, trading at a one-year high against major peers and headed for a fifth straight daily gain fuelled by higher yields and Donald Trump's election victory in the United States.

The greenback climbed above 156 yen for the first time since July, while the euro slumped to its weakest since Nov. 2023 and was last $1.05310 down 0.32%. Sterling hit its lowest on the dollar in four months at $1.2630.

"It's all about the dollar and Donald Trump, that's the story for FX markets," said Nick Rees currency strategist at Monex Europe.

Higher trade tariffs and tighter immigration under the incoming Trump administration are projected to fuel inflation, potentially slowing the Federal Reserve's rate cutting cycle longer term.

These, alongside expectations for deeper deficit spending and higher short term economic growth are lifting Treasury yields, providing the dollar with additional support.

The benchmark 10-year Treasury yield hit 4.483% on Thursday, its highest since July. [US/]

The President-elect's Republican Party will control both houses of Congress when he takes office in January, Edison Research projected on Wednesday, giving him wide powers to push his agenda.

The U.S. dollar index , which measures the currency against six top counterparts including the euro and yen, added 0.3% to 106.79, and briefly touched 107, its highest since early November 2023.

The dollar had dipped briefly on Wednesday after a measure of U.S. consumer inflation met economists' forecasts, keeping the Fed on track to reduce rates at their meeting in December, though traders saw this as a buying opportunity.

"We think this week’s price action has given us a taste of what’s to come in FX markets in this second Trump term, with brief dollar corrections - like after yesterday’s U.S. CPI print - taken as an opportunity to enter structural USD longs at more attractive levels," said ING analysts in a morning note.

Cryptocurrency bitcoin also shot to a record high of $93,480 overnight, and, after a brief pullback, was rising back towards that level on Thursday. Trump has vowed to make the United States "the crypto capital of the planet".



Elsewhere, the Australian dollar fell to a three-month low after marginally weaker jobs data, touching $0.6464, but investors assumed the report was far from weak enough to change the Reserve Bank of Australia's steady policy outlook. [AUD/]

The Swiss franc remained under pressure against the dollar, which was up 0.4% at 0.8897 francs, but the alpine safe haven has been firming on the euro. The common currency was last at 0.9371 francs, just off Wednesday's three-week low.

Source: Investing.com

Publicații recente
Dollar rises after claims data, bitcoin continues rally
21.11.2024 - 22:00
STOXX 600 snaps four-day losing streak on energy, tech boost
21.11.2024 - 19:00
Deere's profit beat overshadows tepid 2025 outlook, shares rise
21.11.2024 - 19:00
Dollar rises after claims data, bitcoin climb continues
21.11.2024 - 18:00
Deere forecasts weak annual profit as farm incomes sag
21.11.2024 - 15:00
US indictments scythe $27 billion off value of India's Adani Group firms
21.11.2024 - 13:00
Deere forecasts annual profit below estimates as farm equipment demand slumps
21.11.2024 - 13:00
Sterling sags as 'Trump bump' lifts dollar
21.11.2024 - 13:00
STOXX 600 drops for fifth day, Nvidia drags European chip stocks
21.11.2024 - 12:00
Dollar steady near recent highs; euro suffers more weakness
21.11.2024 - 12:00
US indictments scythe $34 billion from value of India's Adani Group firms
21.11.2024 - 11:00
Dollar buffered by Trump policy expectations; bitcoin surges
21.11.2024 - 11:00
Dollar stalls as market weighs Trump policies, Fed outlook; bitcoin surges
21.11.2024 - 10:00
European shares edge lower, tech stocks drag after Nvidia's disappointing forecast
21.11.2024 - 10:00
Asia FX weak, dollar near 1-yr high on doubts over Dec rate cut
21.11.2024 - 05:00

© Analytic DC. All Rights Reserved.

new
Analiza pieței Cum va afecta raportul NFP de mâine cursul de schimb al dolarului american?