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FOREX-Dollar dips before consumer price inflation data

Published 12/04/2021, 20:42
Updated 12/04/2021, 20:48
© Reuters.
USD/JPY
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USD/SEK
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DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

(Adds Treasury auction results, comments from Fed's Rosengren,
updates prices)
By Karen Brettell
NEW YORK, April 12 (Reuters) - The dollar dipped slightly on
Monday as traders awaited highly anticipated U.S. inflation and
retail sales data in coming days, and as the Treasury Department
saw solid demand for new sales of three-year and 10-year notes.
The dollar has rebounded this year as U.S. Treasury yields
rise on expectations of faster economic growth and higher
inflation.
U.S. consumer price data for March due on Tuesday is a major
economic focus. Investors are betting that price pressures will
increase due to increased fiscal and monetary stimulus and as
businesses reopen from COVID-19 related closures.
Comparisons with last year are also likely to be strong, due
to a drop in inflation a year ago when businesses closed due to
the spread of the virus.
"With U.S. data expected to come in strong this week, we
believe the dollar's rise can continue," analysts at Brown
Brothers Harriman said in a report on Monday.
Retail sales data for March is due on Thursday.
The dollar index =USD fell 0.04% against a basket of
currencies to 92.164. It is holding above a three-week low of
91.995 reached on Thursday.
The euro EUR=EBS was little changed on the day at $1.1900.
Treasury yields dipped from session highs but were higher on
the day before the Treasury will sell 30-year bonds on Tuesday,
and after Monday's auctions saw good demand. US/
Federal Reserve Chairman Jerome Powell said on Sunday that
the U.S. economy was at "an inflection point" and looked set for
a strong rebound in the coming months, but he also warned of
risks stemming from a hasty reopening. Boston Fed President Eric Rosengren also said on Monday that
the U.S. economy could see a significant rebound this year
thanks to accommodative monetary and fiscal policy, though the
labor market still has much room for improvement. Bitcoin BTC=BTSP chopped around the $60,000 level on
Monday and is holding just below a record high of $61,782
reached last month.
Sterling GBP=D3 rose 0.22% to $1.3724 as traders cheered
the latest phase of the British government's economic reopening
plan.
The dollar fell 0.19% to 109.44 yen JPY= versus the
Japanese currency.
U.S. dollar net short positions have fallen to their lowest
in nearly three years, according to data published on Friday.
ING analysts noted that speculators had cut their net short
dollar positions for the 12th consecutive week, which could
prove a headwind for further dollar gains.
"At this stage, the dollar has lost all its positioning
'advantage,' having a neutral speculative positioning, which
suggests we should no longer see dollar rallies against most G10
currencies exacerbated by the unwinding of USD shorts," they
wrote.

========================================================
Currency bid prices at 3:19PM (1919 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 92.1640 92.2180 -0.04% 2.426% +92.3310 +92.0070
Euro/Dollar EUR=EBS $1.1900 $1.1901 -0.01% -2.60% +$1.1919 +$1.1872
Dollar/Yen JPY=D3 109.4350 109.6300 -0.19% +5.94% +109.7650 +109.2500
Euro/Yen EURJPY= 130.22 130.47 -0.19% +2.60% +130.6100 +129.9000
Dollar/Swiss CHF=EBS 0.9232 0.9246 -0.16% +4.34% +0.9268 +0.9213
Sterling/Dollar GBP=D3 $1.3734 $1.3706 +0.22% +0.53% +$1.3776 +$1.3670
Dollar/Canadian CAD=D3 1.2570 1.2525 +0.39% -1.26% +1.2574 +1.2528
Aussie/Dollar AUD=D3 $0.7612 $0.7618 -0.08% -1.05% +$0.7635 +$0.7596
Euro/Swiss EURCHF= 1.0987 1.1000 -0.12% +1.64% +1.1015 +1.0976
Euro/Sterling EURGBP= 0.8662 0.8679 -0.20% -3.08% +0.8695 +0.8641
NZ NZD=D3 $0.7020 $0.7030 -0.10% -2.20% +$0.7049 +$0.7014
Dollar/Dollar
Dollar/Norway NOK=D3 8.4940 8.4980 -0.13% -1.16% +8.5295 +8.4735
Euro/Norway EURNOK= 10.1100 10.1120 -0.02% -3.41% +10.1310 +10.0910
Dollar/Sweden SEK= 8.5847 8.5376 +0.58% +4.74% +8.5855 +8.5363
Euro/Sweden EURSEK= 10.2170 10.1582 +0.58% +1.40% +10.2180 +10.1630

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
U.S. dollar index https://tmsnrt.rs/3d90u3v
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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