Connect with us

Hi, what are you looking for?


FX volatility low, dollar up slightly as investors wait on inflation

Economy14 minutes ago (Jun 08, 2021 03:12PM ET)

(C) Reuters. FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo

By Sinead Carew

NEW YORK (Reuters) – The U.S. dollar edged up slightly and currency market volatility on Tuesday hit the lowest level in more than a year, as investors sat on the sidelines waiting for clearer signals on inflation levels and central bank policies around the world.

With inflation updates expected from China, Europe and the United States this week and an impending European Central Bank meeting on Thursday to be followed by a U.S. Federal Reserve meeting next week, currency investors appeared to be treading water while the S&P 500 dipped very slightly.

Range-bound currency markets meant a fall in volatility. The Deutsche Bank (DE:DBKGn) Currency Volatility Index hit its lowest level since February 2020.

“All the major currencies are having muted reaction right now as they wait,” said JB Mackenzie, managing director of futures and forex at TD Ameritrade. “We’re looking at the inflation numbers to see how the economies are running. Are they very hot and, if so, does that mean there could be a reaction from central banks globally?”

Traders on Tuesday sent longer-term U.S. Treasury yields to their lowest in more than a month after a report showed small business owners less confident, and narrowing the spread of a closely watched part of the yield curve.

The dollar index was last up 0.12%, while the euro fell 0.09% against the greenback to $1.2179.

The British pound fell 0.15% to $1.4155 and the Australian dollar eased 0.21% to $0.7739, with both stuck in ranges seen over the past couple of months.

Cryptocurrencies were more volatile on the day with Bitcoin last down 3% at $32,544 after hitting a session low of $31,025 – also its lowest level since May 19. Ether was down 7% at $2,464.47.

FX volatility low, dollar up slightly as investors wait on inflation

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.

Click to comment

Leave a Reply

Your email address will not be published.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

You May Also Like

World News

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered...

World News

George Soros and Bill Gates are part of a consortium acquiring a British developer of rapid-testing technology, including for Covid-19 and tropical diseases,...


If you parked your car in one of the thousands of parking spots across Calgary, there’s a good chance you paid the Calgary Parking...


ForexMay 27, 2021 02:04AM ET (C) Reuters. By Peter Nurse — The dollar edged higher in early European trade Thursday, finding support from...

Disclaimer: it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. Copyright © 2021 Your Morning Voice. All Rights Reserved