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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 -
UK Stocks-Factors to watch on March 4
Published at 04/03/2021 at 07:43 -
UK Stocks-Factors to watch on March 4
Published at 04/03/2021 at 05:39 -
European stocks muted as rise in yields, inflation bets curb initial gains
Published at 03/03/2021 at 17:15 -
Banks, homebuilders shine as British shares rally on budget boost
Published at 03/03/2021 at 17:06 -
European stocks rally, FTSE jumps 1% ahead of budget
Published at 03/03/2021 at 08:21 -
Commodity, bank stocks lift UK shares higher ahead of budget
Published at 03/03/2021 at 08:20
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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 -
FOREX-Dollar holds nerve before Powell, Aussie and kiwi rise again
Published at 04/03/2021 at 05:54 -
FOREX-Dollar bides time, looks to Powell for inspiration
Published at 04/03/2021 at 02:38 -
FOREX-Dollar on the front foot as focus shifts to Powell
Published at 04/03/2021 at 00:46 -
FOREX-Dollar gains with yields, U.S. growth seen likely to outperform
Published at 03/03/2021 at 20:41 -
FOREX-Dollar gains as U.S. growth seen likely to outperform
Published at 03/03/2021 at 15:08 -
FOREX-Dollar slips as bond yields drop and investor sentiment strengthens
Published at 03/03/2021 at 11:15
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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 -
REFILE-Oil prices firm on prospect of OPEC+ maintaining supply cuts, drop in U.S. inventories
Published at 04/03/2021 at 03:40 -
PRECIOUS-Gold recovers from 9-month low, but higher yields weigh
Published at 04/03/2021 at 01:23 -
Oil gains as U.S. fuel stocks drop, OPEC+ considers deal rollover
Published at 03/03/2021 at 20:03 -
PRECIOUS-Gold slides to 9-month low as rising bond yields, dollar dim appeal
Published at 03/03/2021 at 18:59 -
PRECIOUS-Gold slips as U.S. bond yields and equities dull its appeal
Published at 03/03/2021 at 13:04 -
PRECIOUS-Gold prices under pressure on firm U.S. Treasury yields
Published at 03/03/2021 at 07:58
FOREX-Dollar slides for third day on U.S. data, stimulus expectations
* U.S. stimulus-driven hopes weigh on dollar
* ECB keeps rates steady; Lagarde warns of more economic downside
* Bitcoin slumps as investors fear tighter regulation under Biden
* Sterling at fresh 2-1/2-year high vs dollar
* Graphic: World FX rates
(Adds 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 late afternoon trading, the dollar index fell 0.3% to 90.103, after touching a nearly one-month high of 90.956 on Monday.
The euro gained 0.5% against the dollar to $1.2163 , rising 0.5% as well versus the yen to 125.92 yen .
That said, TD Securities global head of FX strategy Mark McCormick noted that there is a brewing shift for a lower euro against the dollar because of delays in the vaccinations in the euro zone compared with that of the United States.
"These delays will result in a slower timeline to herd immunity. The downside for markets is that it's also likely to have an immediate impact on the mobility and growth trends," McCormick wrote in a research note.
The greenback also dropped versus currencies tied to commodity prices such as the Australian , Canadian and New Zealand dollars .
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 overall expect the dollar to continue its downtrend, which saw it lose nearly 7% in 2020.
In the cryptocurrency market, bitcoin slumped 9.1% to $32,247, retreating further from record highs, with traders citing fears of tighter U.S. regulation.
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Currency bid prices at 3:41PM (2041 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.0890 90.4100 -0.34% +0.00% +90.4540 +90.0430
Euro/Dollar $1.2165 $1.2106 +0.49% -0.43% +$1.2174 +$1.2106
Dollar/Yen 103.5200 103.5500 -0.03% +0.22% +103.6600 +103.3500
Euro/Yen 125.92 125.33 +0.47% -0.79% +125.9600 +125.3300
Dollar/Swiss 0.8853 0.8898 -0.48% +0.09% +0.8899 +0.8849
Sterling/Dollar $1.3727 $1.3660 +0.48% +0.46% +$1.3745 +$1.3656
Dollar/Canadian 1.2628 1.2635 -0.04% -0.82% +1.2646 +1.2591
Aussie/Dollar $0.7760 $0.7747 +0.19% +0.90% +$0.7782 +$0.7742
Euro/Swiss 1.0770 1.0768 +0.02% -0.34% +1.0786 +1.0757
Euro/Sterling 0.8860 0.8864 -0.05% -0.87% +0.8872 +0.8831
NZ $0.7199 $0.7170 +0.43% +0.28% +$0.7222 +$0.7173
Dollar/Dollar
Dollar/Norway 8.4035 8.4900 -0.48% -1.60% +8.4865 +8.4010
Euro/Norway 10.2246 10.2810 -0.55% -2.32% +10.2920 +10.2138
Dollar/Sweden 8.2741 8.3383 -0.39% +0.95% +8.3530 +8.2651
Euro/Sweden 10.0666 10.1065 -0.39% -0.10% +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, Hugh Lawson and Nick Zieminski)
((gertrude.chavez@thomsonreuters.com; 646-301-4122; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net))