Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Rebound In Yields Provided Support To Dollar

ByActionForex
Published 09/17/2013, 02:38 AM
Updated 03/09/2019, 08:30 AM

US equities jumped sharply overnight on Summers' news and with DOW closing strongly at 15494.78, just inches below 15658.43 high. Treasury yields initially took a beating but recovered most of the ground with 10 year yield closing at 2.874% after diving to 2.777%. 30 year yield has indeed closed higher at 3.871%. Rebound in yield in late US session provided some support for greenback which stabilized from earlier selloff. Meanwhile, consolidation in Asian stocks also lifted dollar mildly. The economic calendar is rather busy today but investors mild will mainly be on tomorrow's FOMC announce where the Fed is expected to taper the $85b asset purchases.

RBA minutes released today noted that policy makers thought the central bank "should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them." And it noted that, "some further decline in the exchange rate would be helpful." The minutes also indicated that lending rates had declined to historically low levels and recent deprecation in exchange rate "were continuing to provide a substantial degree of policy stimulus to the economy." And, that was "most evident in the housing market". It also noted that expectation on US tapering triggered "capital outflows" from emerging markets, and "put downward pressure on exchange rates".

On the data front, UK inflation data will be a main focus in European session with PPI and CPI featured. The CPI is expected to moderate to 2.7% yoy in August. Another focus will be German ZEW, which is expected to improve from 42 to 45 in September. In US session, The CPI will be released and is expected slow further to 1.6% yoy in August. TIC capital flow and NAHB housing market index will also be released.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.