Latest News
Click Here to read UK News
Click Here to read Forex News
Click Here to read Market News
-
European shares drop as high yields spark profit taking in tech, resources
Published at 26/02/2021 at 17:24 -
FTSE 100 marks weakest day in four months as bond rout deepens
Published at 26/02/2021 at 17:10 -
FTSE 100 falls as bond rout hits global equities
Published at 26/02/2021 at 08:18 -
European shares drop more than 1% as bond sell-off intensifies
Published at 26/02/2021 at 08:12 -
UK Stocks-Factors to watch on Feb 26
Published at 26/02/2021 at 07:54 -
European stock futures slide over 1% as surging bond yields roil equity markets
Published at 26/02/2021 at 06:13 -
UK Stocks-Factors to watch on Feb. 26
Published at 26/02/2021 at 05:48 -
FTSE 100 reverses course on high bond yields, Stanchart leads losses
Published at 25/02/2021 at 17:15 -
European shares dip as high yields, inflation concerns return to fore
Published at 25/02/2021 at 17:15 -
FTSE 100 climbs as recovery bets boost mining, energy stocks
Published at 25/02/2021 at 08:28
-
FOREX-Dollar gains on higher yields, risky currencies weaken
Published at 26/02/2021 at 20:29 -
FOREX-Dollar gains on higher yields, safe haven bid, risky currencies weaken
Published at 26/02/2021 at 15:23 -
FOREX-Bond selloff boosts dollar, risk currencies knocked lower
Published at 26/02/2021 at 12:29 -
FOREX-Dollar strengthens as U.S. yields spike, pound falls to one-week low
Published at 26/02/2021 at 09:52 -
CORRECTED-FOREX-Dollar firms after U.S. yield spike; yen continues march lower
Published at 26/02/2021 at 08:53 -
CORRECTED-FOREX-Dollar firms after U.S. yield spike, hits six-month high versus yen
Published at 26/02/2021 at 08:52 -
FOREX-Dollar firms on sudden spike in U.S. Treasury yields
Published at 25/02/2021 at 21:09 -
FOREX-Dollar firms on sudden spike in U.S. Treasury yields
Published at 25/02/2021 at 19:47 -
FOREX-Dollar dips, Aussie jumps on global growth optimism
Published at 25/02/2021 at 15:31 -
FOREX-Currency markets turn "risk on"; Aussie crosses $0.8 for first time in 3 years
Published at 25/02/2021 at 12:45
-
Oil drops on dollar strength and OPEC+ supply expectations
Published at 26/02/2021 at 23:05 -
PRECIOUS-Gold slumps as rising U.S. yields, dollar dull lustre
Published at 26/02/2021 at 18:56 -
PRECIOUS-Gold set for second monthly dip as high U.S. yields erode appeal
Published at 26/02/2021 at 13:41 -
PRECIOUS-Gold hits 8-month trough as U.S. Treasury yields rally
Published at 26/02/2021 at 07:40 -
Oil prices fall on rising U.S. dollar, expectations for supply gains
Published at 26/02/2021 at 02:45 -
PRECIOUS-Gold eyes second straight weekly fall as U.S. yields gain
Published at 26/02/2021 at 01:25 -
Oil mixed, U.S. crude hits highest since 2019 as refineries restart
Published at 25/02/2021 at 20:28 -
PRECIOUS-Gold slides more than 2% as U.S. Treasury yields rise
Published at 25/02/2021 at 18:55 -
PRECIOUS-Gold falls 1% as elevated U.S. yields hit safe haven appeal
Published at 25/02/2021 at 13:18 -
PRECIOUS-Gold slips as higher U.S. Treasury yields dim appeal
Published at 25/02/2021 at 08:12
FOREX-Dollar firm as economic, pandemic gloom damp risk appetite
* Graphic: World FX rates
By Hideyuki Sano
TOKYO, Jan 25 (Reuters) - The dollar held ground against riskier currencies on Monday as weak economic data from Europe and fresh worries about the coronavirus supported investor demand for safe-havens, stretching greenback selling positions.
Economic activity in the euro zone shrank markedly in January as stringent lockdowns to contain the coronavirus pandemic hit the bloc's dominant service industry hard while UK data showed British retailers struggled to recover in December.
British Prime Minister Boris Johnson also said on Friday there was evidence a new variant of COVID-19 discovered late last year could be associated with higher mortality.
The news came as bets against the dollar have become overcrowded, analysts said, with U.S. data on Friday showing net dollar short positions swelling to the largest since May 2011.
The dollar index stood at 90.247 , flat on the day but off last week's low of 90.043 set on Thursday.
The euro was also little changed at $1.2163 , taking a pause after a 0.8% gain last week. The common currency is capped in part by signs of political instability in Rome.
Italian bond yields rose with spreads over German Bunds hitting their highest since November amid a political impasse for Prime Minister Giuseppe Conte who has so far failed to drum up a ruling majority in Italy's parliament.
Conte appealed to centrist and unaligned upper house lawmakers outside the coalition to join his minority government's ranks but few have responded.
"Given Conte won a confidence vote, a dissolution of the parliament and a general election is unlikely," said Makoto Noji, chief currency strategist at SMBC Nikko Securities.
Nonetheless, Italy's case demonstrates the widespread risks of political instability from popular discontent as communities grow weary of the pandemic.
"The stock markets' rally during this pandemic is completely dependent on fiscal expansion and debt monetisation by central banks," Noji said. "Political instability could delay fiscal measures."
In Washington, the honeymoon after Joe Biden's inauguration as President last week means investors are hopeful that at least a part of his $1.9 trillion coronavirus relief plan will come through fairly soon.
But Biden will likely need bipartisan support to push his agenda as Democratic Party narrowly controls Congress while the second impeachment trial of former U.S. President Donald Trump expected early next month could complicate his efforts.
Against this backdrop, the Federal Reserve is expected to maintain its strong commitment to accommodative monetary policy when it holds its first policy meeting later this week.
Elsewhere, the British pound held firm at $1.3684 , not far off a 2-1/2-year high of $1.3745 touched on Thursday thanks in part to Britain's lead in COVID-19 vaccinations.
The dollar traded flat at 103.80 yen .
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Hideyuki Sano; Editing by Sam Holmes)
((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))