US recap: EUR/USD down as dollar shines
Oct 23 (Reuters) -The dollar index rallied on Wednesday for the 16th time in the last 18 sessions, helped by a rise in Treasury yields and an increase in equity market volatility.
The U.S. 10-year note yield hit a 3-month high before paring gains after the Fed Beige Book showed U.S. economic activity was little changed from September through early October. In U.S. data, existing home sales dropped to a 14-year low in September.
The euro was lower after European Central Bank President Christine Lagarde said the central bank will need to be cautious when deciding on further interest rate reductions and take its cue from incoming data.
ECB's chief economist Philip Lane said he still expected a recovery in the euro zone's economy even though "recent data raised some questions" about it.
The pound remained lower after Bank of England Governor Andrew Bailey said that Britain's inflation rate, which fell below target in September, has been pushed around by energy price related factors, and service price inflation still has to fall further nS8N3LF0KD.
The yen remained lower after Bank of Japan Governor Ueda said it is still taking time to get a 2% sustainable inflation rate and that, when there is huge uncertainty, it is best to proceed gradually and cautiously. He also noted that low rates could cause a build up in speculative positions.
The loonie fell after the Bank of Canada lowered its key benchmark rate by 50 basis points to 3.75%, its first bigger-than-usual move in more than four years.
Finance chiefs from the leading developed and emerging economies see "good prospects" for a soft landing for the global economy, according to a G20 draft communique seen by Reuters on Wednesday.
New Zealand central bank governor Adrian Orr said that low and stable inflation is again in sight but the question of how long it takes for lingering inflationary pressures to dissipate remains.
Treasury yields were up 2 to 5 basis points as the curve flattened. The 2s-10s curve was up about 2 basis points to +16.5bp.
The S&P 500 fell 1.22% amid a broad-based market decline.
Oil fell 1.39% after data showed U.S. crude inventories rose by more than expected.
Gold fell 1.24% due to the stronger dollar and higher yields.
Copper slipped 1.03% amid global growth concerns.
Heading toward the close: EUR/USD -0.21%, USD/JPY +0.99%, GBP/USD -0.52%, AUD/USD -0.87%, DXY +0.37%, EUR/JPY +0.78%, GBP/JPY +0.45%, AUD/JPY +0.12%.
For more click on FXBUZ
Editing by Burton Frierson
Reporting by Robert Fullem
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
