“In Asia-Pacific Monday the USD stands at a 3-month low, with little support seen and strong overhead resistance”— Paul Ebeling
USD standing near its lowest mark in 3-months Vs a resurgent EUR, and traders pared earlier bets the Federal Reserve may move soon to taper its stimulus though markets were not fully convinced that higher U.S. inflation is transient.
.DXY, measuring the Buck against a basket of 6 peer currencies, is hanging at 90.045, a bit above a 3-month low of 89.646 set last Friday.
Mins from the FOMC’s April policy meeting released last wk showed a minority of policymakers wanted to discuss tapering bond purchase on worries that pouring more money to an economy on the mend could stoke inflation.
Still, Fed Chairman Powell’s repeated comments that it is not yet time to discuss a reduction in QE monetary easing has led many investors to believe it will be months before it adjusts policy.
With investors pre-occupied with threats of accelerating inflation, US PCE (personal consumption expenditures) data, due Friday, is seen as a tests for markets this wk.
EUR traded at 1.2179 , flat so far Monday and off a 3-month high at 1.2245 tapped last Wednesday.
The Euro and other European currencies have been bolstered by rising optimism about economic re-openings in the region from virus chaos lockdowns.
Data from US Commodity Futures Trading Commission released late Friday showed speculators slightly increased their net short USD positions in the latest wk while raising long positions, both to their highest marks since mid-March.
GBP stood at 1.4144 , off Friday’s 3-month high at 1.4233.
JPY was little moved at 108.92/dollar , trapped between a high of 109.785 hit after a strong US inflation data and a low of 108.34 in the wake of soft US NFPs data, both touched earlier this month.
In the cryptocurrency market
Bitcoin dropped over 7% during the weekend to last trade up 2.4% at 35,528 , having fallen to 31,107 at 1 point Sunday.
Ether fell to a 2-month low of 1,730 Sunday, down 60% from a record high hit 12 days ago, and was fetching 2,178 , + 3.8%.
Have a healthy week, Keep the Faith!