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Weaker pound, retail stocks boosts FTSE 100; Mid-caps end best day in two-weeks;
Published at 22/04/2021 at 17:35 -
Solid earnings boost European stocks as ECB stands pat
Published at 22/04/2021 at 17:22 -
FTSE 100 rises on miners, industrials boost; Rentokil Initial slumps
Published at 22/04/2021 at 08:22 -
European shares extend gains on upbeat Nestle, Volvo earnings
Published at 22/04/2021 at 08:17 -
UK Stocks-Factors to watch on April 22
Published at 22/04/2021 at 07:52 -
UK Stocks-Factors to watch on April 22
Published at 22/04/2021 at 06:17 -
FTSE 100 ends higher on AstraZeneca, oil stock boost; Just Eat Takeaway slumps
Published at 21/04/2021 at 17:29 -
European shares rebound on strong earnings, M&A speculation boosts Hugo Boss
Published at 21/04/2021 at 17:17 -
FTSE 100 rises on boost from BP, Shell; Just Eat Takeaway slumps
Published at 21/04/2021 at 08:23 -
European stocks bounce back as ASML outlook lifts tech sector
Published at 21/04/2021 at 08:20
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FOREX-Euro and U.S. dollar waffle as markets weigh ECB policy talk
Published at 22/04/2021 at 15:52 -
FOREX-Euro inches higher ahead of ECB meeting, dollar languishes
Published at 22/04/2021 at 12:09 -
FOREX-Euro tiptoes higher ahead of ECB meeting
Published at 22/04/2021 at 09:12 -
FOREX-Dollar near multi-week lows as yield support fades, euro eyes ECB
Published at 22/04/2021 at 06:17 -
FOREX-Dollar loses bond yield support, euro looks to ECB for inspiration
Published at 22/04/2021 at 03:24 -
FOREX-Dollar stalls as yield gains slow, focus shifts to ECB
Published at 22/04/2021 at 02:03 -
FOREX-U.S. dollar losses bounce after Canada tips toward higher rates
Published at 21/04/2021 at 21:00 -
FOREX-U.S. dollar losses bounce after Canada tips toward higher rates
Published at 21/04/2021 at 17:51 -
FOREX-Dollar firm as COVID-19 resurgence dampens risk appetite
Published at 21/04/2021 at 15:25 -
FOREX-Dollar firm as COVID-19 resurgence hits reflation trades
Published at 21/04/2021 at 12:33
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PRECIOUS-Gold slips 1% as stronger U.S. dollar weighs
Published at 22/04/2021 at 19:15 -
Oil eases as Libya output decline offsets risks to Asian demand
Published at 22/04/2021 at 19:09 -
PRECIOUS-Gold slips from 2-month peak, palladium holds near record high
Published at 22/04/2021 at 13:20 -
PRECIOUS-Gold nears $1,800 level as U.S. dollar, yields lose ground
Published at 22/04/2021 at 08:25 -
Oil falls 3rd day on U.S. stock build, surging COVID-19 cases
Published at 22/04/2021 at 03:04 -
PRECIOUS-Gold hovers near eight-week high on easing U.S. dollar, yields
Published at 22/04/2021 at 02:37 -
Oil prices drop 2% on U.S. crude build, COVID-19 surge in India
Published at 21/04/2021 at 22:33 -
PRECIOUS-Supply woes push palladium to record high, gold up more than 1%
Published at 21/04/2021 at 18:54 -
PRECIOUS-Gold gains as easing U.S. Treasury yields boost appeal
Published at 21/04/2021 at 14:04 -
PRECIOUS-Gold gains as softer U.S. dollar, yields lift appeal
Published at 21/04/2021 at 08:11
FOREX-Dollar gains on higher yields, risky currencies weaken
(Updates prices, adds data outlook, stimulus details)
* Graphic: World FX rates
By Karen Brettell
NEW YORK, Feb 26 (Reuters) - The U.S. dollar gained on Friday as U.S. government bond yields held near one-year highs, while riskier currencies such as the Aussie dollar weakened.
Yields have surged as an acceleration in the pace of vaccinations globally and optimism over improving global growth bolster bets that inflation will rise. That has also led investors to price in earlier monetary tightening than the Federal Reserve and other central banks have signaled.
The dollar move is "a function of what's happening on the yields side," said Jeremy Stretch, head of G10 FX strategy at CIBC World Markets. The 10-year yield briefly climbed above the S&P 500 dividend yield on Thursday, he noted, indicating "uncertainty that is writ large."
The dollar index rose 0.59% to 90.847, its highest level in a week.
It gained against the yen , touching 106.69 for the first time since September.
The benchmark 10-year Treasury yield surged above 1.6% on Thursday for the first time in a year after a weak seven-year note auction. It was last at 1.45%.
U.S. yield increases have accelerated this month as Fed officials refrain from expressing concern about the yield gains.
“The Fed has not really hinted that that’s making them uncomfortable, so the bond market’s going to push that,” said Edward Moya, senior market analyst at OANDA in New York. “That’s really dictating this move in the dollar.”
Riskier currencies retreated. The Aussie fell 1.99% to $0.7713, after topping $0.80 on Thursday for the first time since February of 2018.
Marshall Gittler, head of research at BDSwiss, said the Australian dollar was underperforming despite the market signaling higher growth, likely because the country's central bank's yield curve control policy would restrain its bond yields from moving much higher. That, in turn, could limit the attractiveness of the currency.
The greenback is likely to continue to benefit from safe- haven flows if risk appetite continues to worsen, and emerging market currencies may be among the biggest losers.
“There’s a big, big concern that this reflation risk is going to get out of hand and that’s going to really pummel the emerging market currencies, and I think you’re going to see that investors are going to need to reassess their dollar positions,” said Moya.
Data on Friday showed U.S. consumer spending increased by the most in seven months in January, while price pressures were muted.
U.S. jobs data for February released next Friday is the next major economic focus.
Investors are also waiting on details of the U.S. fiscal stimulus bill, which is expected to be passed in the coming weeks.
The Democratic-controlled House of Representatives on Friday was poised to push through President Joe Biden's $1.9 trillion coronavirus aid package, although it looked unlikely to be able to use the bill to raise the minimum wage nationwide.
The euro dipped 0.79% to $1.2078 after touching a seven-week high of $1.2244 on Thursday.
Bitcoin fell 0.32% to $46,946. Ethereum
dropped 0.7% to $1,468.
========================================================
Currency bid prices at 3:02PM (2002 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 90.8470 90.3270 +0.59% 0.962% +90.9230 +90.1250
Euro/Dollar $1.2078 $1.2175 -0.79% -1.14% +$1.2185 +$1.2072
Dollar/Yen 106.5850 106.2100 +0.40% +3.24% +106.6850 +105.9000
Euro/Yen 128.73 129.35 -0.48% +1.43% +129.5300 +128.6600
Dollar/Swiss 0.9090 0.9051 +0.44% +2.75% +0.9102 +0.9027
Sterling/Dollar $1.3944 $1.4009 -0.46% +2.07% +$1.4025 +$1.3890
Dollar/Canadian 1.2697 1.2605 +0.75% -0.27% +1.2729 +1.2588
Aussie/Dollar $0.7713 $0.7870 -1.99% +0.27% +$0.7883 +$0.7707
Euro/Swiss 1.0978 1.1016 -0.34% +1.58% +1.1026 +1.0957
Euro/Sterling 0.8659 0.8688 -0.33% -3.11% +0.8730 +0.8657
NZ $0.7236 $0.7370 -1.85% +0.74% +$0.7381 +$0.7227
Dollar/Dollar
Dollar/Norway 8.6430 8.5010 +1.83% +0.81% +8.6665 +8.5025
Euro/Norway 10.4421 10.3450 +0.94% -0.24% +10.4805 +10.3170
Dollar/Sweden 8.4303 8.2950 +0.88% +2.85% +8.4347 +8.2815
Euro/Sweden 10.1815 10.0922 +0.88% +1.04% +10.1985 +10.0878
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Additional reporting by Ritvik Carvalho in London; Editing by Dan Grebler and Andrea Ricci)
((karen.brettell@thomsonreuters.com))