Dollar gains ahead of key inflation data, China rates cut

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Dollar gains ahead of key inflation data, China rates cut

The video has not been loaded as investors braced for January s U.S. Federal We apologize.

Click here to see other videos from our team. If you refresh your browser or Reserve meeting and raise bets it will chart a year ahead containing several rate hikes while China cuts borrowing costs A Bank of Japan meeting that ends on Tuesday, British inflation data on Wednesday and Australian jobs figures on Thursday are also in view as traders gauge the global policy An unexpected cut to some key lending rates in China will be in place if you change your bets on Thursday.

The dollar was 0.3% higher than 114.47 yen late in the Asia session, about 0.8% above a Friday low, though it was only briefly weighed on by the outlier. It also edged a fraction firmer on the euro to $1.1421. The moves follow a jump in the yields and the dollar on Friday and underscore support for the dollar from the hawkish rates outlook, even though momentum for gains has started to wane. The U.S. dollar index, which declined sharply last week until Friday's leap, was at 95.225 in Asia on Monday. Friday s move suggests to me that the interest rate driver for dollar strength is not dead and buried, said National He said it may not necessarily return to drive the new dollar.

The highs but reckoned traders were on guard. He said that there was a hawkish twist out of every Fed meeting since June last year. The Fed is not expected to change rates, but there is a growing drumbeat of hawkish comments from within and outside the central bank. Last week, J.P. Morgan CEO Jamie Dimon remarked that there could be six or seven hikes this year and billionaire hedge fund manager Bill Ackman floated on Twitter over the weekend about the possibility of an initial 50 basis point hike to tame inflation. The cash Treasury market was closed for a holiday on Monday but 10 year futures were sold for a two-year low in Asia, a conviction in the market of at least four hikes in 2022.

Even the ultra-accommodative Bank of Japan is debating how Inflation data could help extend a month-long rally in sterling, after it stopped moving around its 200 day moving average last week, despite the fact that the dollar gains are momentum for tightening almost everywhere else, with Reuters reporting last week that the Bank of Japan is debating how Inflation data could help extend a month-long rally in sterling. It held on to $1.3669 on Interest rate markets, which are currently pricing an 80% chance of a 25 Bp rate hike by the Bank of England on 3 February. A quicker pace of inflation could see pricing move closer. The outlier is China, where growth data was confirmed on Monday.

Coronaviruses restrictions were dragging on consumption and the People's Bank of China PBOC said it was lowering the loans by 10 basis points, surprising analysts who now reckon it is a harbinger of more to come. Over time, we could see more and that might be supportive of the commodity currencies, said Bank of Singapore strategist Moh, before firming about 0.1% to 6.3450 per Australian and New Zealand dollars, which fell sharply on Friday.