REFILE-FOREX-Dollar rises for second day as markets look to Biden's stimulus plan – Reuters

 (Removes extraneous word in 2nd paragraph)
    * Biden to give details of 'trillions' in spending Thursday
    * Bitcoin rises, eyeing $40,000 again
    * Graphic: World FX rates

    By Gertrude Chavez-Dreyfuss
    NEW YORK, Jan 14 (Reuters) - The dollar rose for a second straight session on Thursday, holding above
three-year lows against major peers, in line with a rise in Treasury yields, amid upbeat expectations
about President-elect Joe Biden's fiscal stimulus.
    The U.S. 10-year Treasury yield rose, as Biden is expected to unveil a stimulus package
proposal on Thursday designed to jump-start the economy during the coronavirus pandemic with an economic
lifeline that could exceed $1.5 trillion and help minority communities.
    That helped support the dollar and boosted U.S. yields. Since the beginning of the month, 10-year
yields have climbed more than 20 basis points. 
    "With labor really struggling, there's an argument that we could push for a higher stimulus number,"
said Edward Moya, senior market analyst, at OANDA in New York. "In the end, markets are anticipating that
we're going to see more stimulus than what is expected in Biden's first 100 days and that's why we're
seeing the dollar holding up."
    In mid-morning trading, the dollar index rose 0.2% to 90.521, as investors awaited details of
Biden's pandemic relief plan. 
    The dollar has risen in six of the last seven trading sessions, as the prospect of more stimulus has
weighed on U.S. government bonds, sending the benchmark 10-year Treasury yield above 1% for the first time
since March.
    Expectations are high for the stimulus, but many analysts believe the spending push has already been
priced in.    
    "We feel the fiscal cat is out of the bag already: it would take a lot to surprise markets after the
re-pricing seen last week," ING analysts said. "The scope for the reflation trade to restart on the back
of this announcement alone is limited."
    Benjamin Melman, chief investment officer at Edmond de Rothschild AM, was also cautious. He said Biden
might have to scale back his stimulus ambitions to get the plan through Congress.
    The euro eased 0.3% to $1.2118, despite positive news from the bloc's economic powerhouse. 
    Germany's economy shrank by 5% in 2020, less than expected and a smaller contraction than during the
global financial crisis, as unprecedented government rescue and stimulus measures lessened the shock of
the COVID-19 pandemic.
    The European single currency is being weighed down by expectations that the European Central Bank will
be monitoring exchange rates more closely. The euro has gained about 6.3% over the last six months.
    ECB policymaker Francois Villeroy de Galhau said on Wednesday that the ECB was keeping a close eye on
exchange rate developments and their negative impact on inflation.
    "The continued resonance of...ECB's Villeroy's rhetorical shot across the bows of euro bulls yesterday
seems to have maintained euro/dollar's heaviness," said Action Economics on its blog on Thursday.
    The global recovery-sensitive Australian and New Zealand dollars firmed to US$0.7744 and
    Bitcoin held gains on Thursday after a slide of nearly $12,000 from last week's record high
of $42,000. It rose about 5.9%  to $39,588 on Thursday.
    Interest in the cryptocurrency has surged as institutional investors began buying heavily, viewing it
as both an inflation hedge and as exposed to gains if it becomes more widely adopted.
    Currency bid prices at 10:17AM (1517 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Dollar index                 90.5190        90.2960     +0.26%         +0.00%      +90.5830    +90.2350
 Euro/Dollar                  $1.2113        $1.2159     -0.37%         -0.86%      +$1.2172    +$1.2111
 Dollar/Yen                   104.1050       103.8850    +0.19%         +0.77%      +104.1950   +103.8150
 Euro/Yen                     126.08         126.28      -0.16%         -0.66%      +126.5200   +126.0800
 Dollar/Swiss                 0.8903         0.8875      +0.33%         +0.64%      +0.8917     +0.8866
 Sterling/Dollar              $1.3650        $1.3637     +0.12%         -0.07%      +$1.3678    +$1.3620
 Dollar/Canadian              1.2672         1.2701      -0.23%         -0.49%      +1.2706     +1.2666
 Aussie/Dollar                $0.7745        $0.7734     +0.16%         +0.70%      +$0.7771    +$0.7729
 Euro/Swiss                   1.0782         1.0787      -0.05%         -0.23%      +1.0814     +1.0779
 Euro/Sterling                0.8871         0.8912      -0.46%         -0.74%      +0.8918     +0.8871
 NZ                           $0.7182        $0.7175     +0.14%         +0.06%      +$0.7207    +$0.7173
 Dollar/Norway                8.5015         8.4740      +0.34%         -0.98%      +8.5220     +8.4485
 Euro/Norway                  10.2980        10.2775     +0.20%         -1.61%      +10.3300    +10.2780
 Dollar/Sweden                8.3491         8.3486      -0.37%         +1.86%      +8.3596     +8.3048
 Euro/Sweden                  10.1127        10.1499     -0.37%         +0.36%      +10.1550    +10.1030
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Julien Ponthus in London; Editing by Alex

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