Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Weakens to Six-Week Low; Euro on The Rise

ForexApr 20, 2021 02:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse

Investing.com - The dollar weakened in early European trading Tuesday, trading near a six-week low, with the euro, in particular, benefitting from progress for the region's vaccination programme.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was 0.1% lower at 90.925, having earlier fallen as low as 90.858, the weakest since March 3.

USD/JPY was up 0.1% at 108.30, GBP/USD was up 0.1% at 1.3990, after posting a fresh one-month high at $1.4009, helped by better than expected unemployment data. The risk-sensitive AUD/USD rose 0.6% to 0.7800, hitting a new one-month high as the Reserve Bank of Australia released the minutes from its latest policy meeting earlier in the day.

EUR/USD rose 0.2% to 1.2052, after climbing as high as $1.2072 for the first time since March 3.

The euro suffered against the greenback in the early months of this year as the European Union was slow in the rollout of Covid-19 vaccines, suffering a third wave of cases as a result. However, the region is catching up, helped by the announcement that the EU has secured an additional 100 million doses of the BioNTech/Pfizer vaccine.

“The good news is that lockdowns imposed last month do seem to have stabilized/reversed the rise in case numbers in many continental European countries. And vaccination rates do seem to be improving,” said analysts at ING, in a note.

The dollar had already been losing traction as U.S. bond yields have slumped from the 14-month peak touched last month, with the benchmark 10-year Treasury yield trading around 1.60%, reducing the greenback's yield attraction.

This followed repeated assurances from Fed policymakers that near-term price pressures will be transitory, and can be 'looked through'.

Attention will soon turn to Thursday’s meeting of the European Central Bank, although few fireworks are expected.

“We do not expect to see any major market reactions to this week’s ECB meeting, but if we have to take a stance, we see risks tilted towards a slightly hawkish market reaction,” said analysts at Nordea, in a note, “as [ECB President Christine] Lagarde may struggle to defend the changed pace of purchases as being that significant in light of the recent numbers.”

Elsewhere, USD/CNY fell 0.2% to 6.4960, after the People’s Bank of China kept its loan prime rate steady at 3.85% earlier in the day, as widely expected.

China’s economy is on track to return to trend growth after its V-shaped recovery from the coronavirus slump ended with a record pace of expansion last quarter, according to analysts at Goldman Sachs (NYSE:GS).

 

Dollar Weakens to Six-Week Low; Euro on The Rise
 

Related Articles

Dollar dips as rate hike bets fade
Dollar dips as rate hike bets fade By Reuters - Oct 22, 2021 3

By Karen Brettell NEW YORK (Reuters) - The dollar slipped against a basket of currencies on Friday as investors continued to unload long positions that benefited from an increase...

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 (2)
Meru Pet
Meru Pet Apr 20, 2021 6:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
people are buying euros to invest in red stocks ?
Cool Kid
Cool Kid Apr 20, 2021 5:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wow... This is shoking
 
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