USD is now in narrow trading range near multi-wk lows Vs its peers Friday, as traders contemplate the next moves by major central banks ahead of the FOMC meeting next wk.
Cryptocurrency Ether is off 10% and Bitcoin is off 5% on the notion that Mr. Biden’s plan to raise capital gains taxes if it happens (unlikely) would curb investment in digital assets.
EUR nursed losses after ECB President Lagarde caboshed expectations that policymakers will start to consider a tapering of bond purchases due to an improving economic outlook.
Fed Chairman Powell is likely to repeat Ms. Lagarde’s message that talk of tapering is premature, which would put downward pressure on Treasury yields and cap USD’s gains against most currencies.
USD marked as low as 107.80 JPY Friday, the lowest since 4 March.
EUR stood at $1.2027 after dropping 0.2% Thursday not far from the 7-wk high of $1.2080 set earlier this wk.
The Australian and New Zealand Dollars firmed Friday.
GBP was quoted at $1.38535 following a 0.6% loss during Thursday’s session.
Have a healthy weekend, Keep the Faith!