The dollar hit a fresh two-month high against a basket of peers on Wednesday - GEPL Capital
News / Other data
* The dollar pushed to a two-month high against the euro and a six-month peak versus the yen on Thursday, as a resilient U.S. economy led traders to pare their bets on rate cuts this year. The greenback has also benefited from demand for safe havens, paradoxically as a U.S. debt ceiling impasse threatens a disastrous default as soon as June 1, when the Treasury has warned it would be unable to pay all its bills.
* The dollar hit a fresh two-month high against a basket of peers on Wednesday, bolstered by recent signs of a resilient U.S. economy, while unease over U.S. debt ceiling talks kept investors moving to safe havens. The dollar is not seen posing an immediate risk, unlike certain Treasury securities, even though the debt ceiling impasse in Washington could lead to a default and push the U.S. economy into recession, analysts said.
* After an April that yielded a yearly high of 1.1095, the EUR/USD has so far had a rough month of May, with the currency pair dropping to a low of 1.0760 on Tuesday and remaining under pressure on Wednesday, a weakness that analysts at Goldman Sachs attempted to explain in a note published last night.
* The U.S. dollar stabilized in early European trade Wednesday, remaining close to last session’s two-month high given the lack of progress in negotiations over raising the U.S. debt ceiling. At 02:55 ET (06:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded largely unchanged at 103.395, just below the 103.65 two-month peak seen late Tuesday.
* Most Asian currencies moved little on Wednesday, while the dollar steadied from recent gains as markets awaited fresh cues on monetary policy from the minutes of the Federal Reserve’s May meeting.
Data inference
* No Major Event.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://web.geplcapital.com/term-disclaimer
SEBI Registration number is INH000000081
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime
Tag News
EURINR trading range for the day is 89.13 - 89.49. - Kedia Advisory