Dollar Up, Pound Up as BOE Signals Earlier-Than- Expected Interest Rate Hike By

Dollar Up, Pound Up as BOE Signals Earlier-Than- Expected Interest Rate Hike By

© Reuters.

By Gina Lee – The dollar was up, with the pound was just shy of its Tuesday peak on Thursday morning in Asia, over firming expectations that the as soon as November 2021.

Commodity currencies stood near multi-month highs, with strong raw material prices and increasing risk sentiment turning investors away from the safe-haven U.S. currency, which had recently been boosted by expectations that the U.S. Federal Reserve will begin asset tapering.

The that tracks the greenback against a basket of other currencies inched up 0.02% to 93.558 by 12:36 AM ET (4:36 AM GMT).

The pair inched down 0.10% to 114.14.

The pair edged up 0.14% to 0.7526 while the pair edged down 0.15% to 0.7190.

The pair inched down 0.02% to 6.3925 and the pair inched down 0.05% to 1.3817.

“It looks almost certain that the BOE will raise interest rates in November, perhaps again in December, as inflation could get out of control otherwise given a severe labor shortage,” Daiwa Securities senior strategist Yukio Ishizuki told Reuters.

“And globally we are likely to see rate hikes to curb inflation in many countries, which means the U.S. dollar is standing out less than before, in terms of rate hike expectations.”

Across the Atlantic, the Fed is widely expected to announce the beginning of asset tapering at its meeting in November 2021. However, it is not expected to begin interest rate hikes until 2022.

“It’s as if the BoE is stealing the spotlight from the Fed as it looks likely to raise rates before the Fed. What could be the game-changer, though, is if the Fed is also jumping on the bandwagon of global rate hikes much sooner than expected,” Ryobi Systems president of Financial algotech company Kyosuke Suzuki told Reuters.

Meanwhile, commodity currencies led gains against the dollar after oil prices climbed to their highest levels in many years. The Australian dollar was at a three-and-a-half-month high while its New Zealand counterpart hit a four-month peak.

“Given the massive rise in commodity prices, commodity-linked currencies will enjoy a tailwind,” said Teppei Ino, senior currency strategist at MUFG Bank.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *