2021-01-28 03:45:01 03:45 01/28/21 01/2803:45 01/28/2103:45 | FX Update:FX Update: The dollar has remained buoyant amid a backdrop of tumbling stock markets and commodities, with what had been a risk-wary sentiment giving way to a more decidedly risk-off sentiment. The DXY dollar index has seen a narrow range so far today, holding just of yesterday's 10-day high at 90.88. The six-week high seen on January 18 is just above here, at 90.95. The index would have been higher today had it not been for a firm euro, which left EUR-USD holding a narrow range near 1.2100 while euro crosses lifted. EUR-JPY and EUR-GBP, for instance, posted respective three- and one-day highs, while the common currency traded at respective three-week and four-month highs in the cases against the Australian and Canadian dollars, which have underperformed alongside other commodity-correlating and cyclical currencies. The euro rebounded after underperforming yesterday following remarks by ECB board member Knot, who reminded markets of the central bank's disquiet with regard to exchange rate appreciation. Elsewhere, the dollar performed better. Cable posted a two-day low at 1.3640, extending the correction from yesterday's 32-month peak at 1.3761. USD-JPY edged out a 17-day high at 104.38, lifting the pair to the upper reaches of a broadly stable range that's been seen over the last couple of months. AUD-USD printed a one-month low at 0.7602, while USD-CAD posted a one-month high at 1.2861. The dollar's perkiness has come despite a narrowing in U.S. Treasury yield advantage relative to peers, indicating that markets are viewing the dollar as a safe haven again. The Fed failed to cheer market sentiment following the FOMC meeting yesterday, and Fed Chairmen Powell stressed that the U.S. was a long way from full recovery. Investors have become more circumspect due to the impact of the Covid-related societal restrictions, which have weighed on growth outlooks, as has the bumpy vaccine rollouts. Optimism over the $1.9 tln stimulus package in the U.S. has also been shaken, and by the likelihood it will have to be trimmed measurably, and will probably be delayed until at least mid-March. These concerns overshadowed a preponderance of good news form the quarterly procession of corporate earnings reports (which are always a stage-managed affair, beating expectations by design). |
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LiveRamp downgraded to Market Perform from Outperform at BMO Capital »
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Credit Suisse to hold a virtual conference »
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