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FTSE 100 falls as high yields weigh, but marks best week in 2 months
Published at 05/03/2021 at 17:13 -
European stocks pressured by yields, but mark weekly gains on firm cyclicals
Published at 05/03/2021 at 17:12 -
Powell disappointment hits European stocks, tech slides again
Published at 05/03/2021 at 08:28 -
UK shares fall as higher bond yields weigh
Published at 05/03/2021 at 08:13 -
UK Stocks-Factors to watch on March 5
Published at 05/03/2021 at 07:34 -
UK Stocks-Factors to watch on March 5
Published at 05/03/2021 at 05:58 -
FTSE 100 snaps 3-day winning streak as high yields weigh
Published at 04/03/2021 at 17:10 -
European shares end lower as miners and tech are pressured by firmer yields
Published at 04/03/2021 at 17:04 -
Rising U.S. yields knock European stocks, miners slump
Published at 04/03/2021 at 08:30 -
FTSE 100 falls as high yields, inflation worries return to fore
Published at 04/03/2021 at 08:28
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FOREX-Dollar jumps as U.S. jobs growth beats expectations
Published at 05/03/2021 at 19:57 -
FOREX-Dollar jumps as U.S. jobs growth beats expectations
Published at 05/03/2021 at 15:02 -
FOREX-Dollar gains across the board as Powell sticks to script
Published at 05/03/2021 at 12:08 -
FOREX-Dollar gains across the board as Powell sticks to script
Published at 05/03/2021 at 09:47 -
FOREX-Dollar ascendant as Powell sticks to script; risk currencies slide
Published at 05/03/2021 at 04:50 -
FOREX-Dollar ascendant as Powell stays dovish course; risk currencies slide
Published at 05/03/2021 at 01:24 -
FOREX-Dollar hits three-month highs as Fed's Powell sticks to script
Published at 04/03/2021 at 20:26 -
FOREX-Dollar pares gains before Fed's Powell speaks
Published at 04/03/2021 at 15:11 -
FOREX-Dollar holds before Powell speaks, Swiss franc falls to five-month low
Published at 04/03/2021 at 12:33 -
FOREX-Dollar holds gains ahead of Powell, Swiss franc falls to 5-month low
Published at 04/03/2021 at 08:53
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Oil surges after OPEC+ hold cuts, strong U.S. jobs growth
Published at 05/03/2021 at 19:33 -
PRECIOUS-Gold holds near 9-month low as yields, dollar gain further
Published at 05/03/2021 at 18:58 -
PRECIOUS-Gold slides to 9-month low as high yields, dollar dull appeal
Published at 05/03/2021 at 12:47 -
PRECIOUS-Gold slides to 9-month low as Powell's remarks make yields rally
Published at 05/03/2021 at 07:28 -
Oil extends gains on OPEC+ supply restraint
Published at 05/03/2021 at 01:46 -
PRECIOUS-Gold sinks to 9-month low as Fed remarks boost dollar, bond yields
Published at 05/03/2021 at 01:26 -
Oil scales 1-year peak as OPEC+ rolls over output for April
Published at 04/03/2021 at 20:15 -
PRECIOUS-Gold crumbles under rising yields, dollar; hits 9-month low
Published at 04/03/2021 at 19:46 -
PRECIOUS-Gold rises as easing bond yields offset firm dollar
Published at 04/03/2021 at 12:42 -
PRECIOUS-Gold prices off 9-month low, but pressured by rising bond yields
Published at 04/03/2021 at 07:48
FOREX-Dollar retreats for third day on U.S. data, stimulus hopes
* U.S. stimulus-driven hopes weigh on dollar
* ECB keeps rates steady; Lagarde warns of more economic downside
* Norwegian crown rises on Norges Bank's plans of a 2022 rate hike
* Bitcoin slumps as investors fear tighter regulation under Biden
* Sterling at fresh 2-1/2-year high vs dollar
* Graphic: World FX rates
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 21 (Reuters) - The dollar fell for a third straight session on Thursday, with investors seeking out higher-yielding currencies, as a slew of better-than-expected U.S. data and continued optimism about a massive stimulus package spurred hopes of a recovery in the world's largest economy.
The euro, on the other hand, gained versus an overall weak dollar, even as European Central Bank President Christine Lagarde warned about a renewed surge in COVID-19 infections and the prospect of prolonged restrictions that could challenge the region's economic outlook.
The ECB, which kept interest rates steady on Thursday, also pledged to provide more support for the economy if needed.
The FX market showed little reaction to Lagarde's comments, as market participants continued to focus on what seemed like an improving global economic outlook and a nearly $2 trillion U.S stimulus package proposed by new Democratic President Joe Biden's administration.
On Thursday, U.S. data showed an economy slowly getting some traction, with slightly better-than-expected initial jobless claims, upbeat housing starts data, and a higher factory index for the mid-Atlantic region.
"Across asset markets, optimism about growth is high and I think it's appropriate," said Anujeet Sareen, global fixed income portfolio manager at Brandywine Global Investment Management in Philadelphia.
"We see the dollar going lower because global growth will get better, the trade balance is deteriorating, and the Federal Reserve is going to keep its easy monetary policy," he added.
The dollar typically loses out against its major peers in times of global expansions, when investors are inclined to take on more risk.
In afternoon trading, the dollar index fell 0.2% to 90.19, after touching a nearly one-month high of 90.956 on Monday.
The euro gained 0.5% against the dollar to $1.2159 , rising as well versus the yen to 125.89 yen .
The greenback also dropped versus currencies tied to commodity prices such as the Australian , Canadian and New Zealand dollars .
The Norwegian crown rose 0.5% against the dollar to 8.4185 after Norway's central bank struck a hawkish tone on Thursday, saying it expects to raise rates early next year as the economy recovers from the coronavirus pandemic.
Sterling likewise set a fresh 2-1/2-year high against the dollar and a new eight-month peak against the euro on hopes Britain's brisk pace of COVID-19 vaccinations would lead to a relatively quicker rebound in economic growth.
Many analysts expect the dollar to continue its downtrend, which saw it lose nearly 7% in 2020.
That said, Wells Fargo's Nelson thinks the dollar is due for a reversal from its current weak trend in the coming weeks.
"There is an underappreciation of how difficult it would be for Biden to come in and have another $2 to $3 trillion out there in spending approved," Nelson said.
In the cryptocurrency market, bitcoin slumped nearly 11% to $31,757, retreating further from record highs, with traders citing fears of tighter U.S. regulation.
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Currency bid prices at 1:58PM (1858 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.1620 90.4100 -0.27% +0.00% +90.4540 +90.0430
Euro/Dollar $1.2155 $1.2106 +0.41% -0.51% +$1.2174 +$1.2106
Dollar/Yen 103.5300 103.5500 +0.00% +0.25% +103.6600 +103.3500
Euro/Yen 125.85 125.33 +0.41% -0.84% +125.9600 +125.3300
Dollar/Swiss 0.8857 0.8898 -0.46% +0.12% +0.8899 +0.8849
Sterling/Dollar $1.3711 $1.3660 +0.38% +0.37% +$1.3745 +$1.3656
Dollar/Canadian 1.2632 1.2635 +0.00% -0.78% +1.2646 +1.2591
Aussie/Dollar $0.7754 $0.7747 +0.09% +0.80% +$0.7782 +$0.7742
Euro/Swiss 1.0766 1.0768 -0.02% -0.38% +1.0786 +1.0757
Euro/Sterling 0.8864 0.8864 +0.00% -0.82% +0.8872 +0.8831
NZ $0.7190 $0.7170 +0.28% +0.13% +$0.7222 +$0.7173
Dollar/Dollar
Dollar/Norway 8.4195 8.4900 -0.48% -1.60% +8.4865 +8.4010
Euro/Norway 10.2360 10.2810 -0.44% -2.21% +10.2920 +10.2138
Dollar/Sweden 8.2915 8.3383 -0.25% +1.16% +8.3530 +8.2651
Euro/Sweden 10.0810 10.1065 -0.25% +0.04% +10.1115 +10.0570
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates TAKE A LOOK-U.S. Inauguration Day - Biden to take office as U.S. president
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(Reporting by Gertrude Chavez-Dreyfuss; Editing by Jonathan Oatis and Hugh Lawson)
((gertrude.chavez@thomsonreuters.com; 646-301-4122; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net))