Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Edges Higher; Fed Minutes, Chairman Choice in Focus

ForexNov 22, 2021 02:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© 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
 

Related Articles

Dollar Rebounds; Traders Reassess Omicron Risks
Dollar Rebounds; Traders Reassess Omicron Risks By Investing.com - Nov 29, 2021 1

By Peter Nurse Investing.com - The dollar traded higher Monday, boosted by higher U.S. Treasury yields as traders considered Friday’s sharp moves on the discovery of the omicron...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Afolabi Ayo
Afolabi Ayo Nov 22, 2021 5:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dollar is not moving higher
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
or
Sign up with Email