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FOREX-Dollar gains vs most major currencies as Fed meeting looms this week

Published 26/04/2021, 15:32
© Reuters.
USD/TRY
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USD/SEK
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DX
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* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* German Ifo data short of expectations
* Focus on Fed meeting ending Wednesday
* Bitcoin reclaims $50,000 bar
* Turkish lira recovers from steep losses

(Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 26 (Reuters) - The dollar rose from an eight-week low against the euro on Monday, also
gaining against major currencies such as the yen and Swiss franc, with investors consolidating positions
ahead of the Federal Reserve's monetary policy meeting this week.
The dollar has fallen nearly 3% since late March as U.S. Treasury yields, which had risen this year and
supported the greenback, traded in narrow ranges.
"We're seeing traders square up ahead of the Fed meeting. The dollar has been under pressure the last
couple of weeks. So you're seeing more of a sideways market into the FOMC," said Edward Moya, senior market
strategist, at online FX trading platform OANDA.
The Federal Open Market Committee ends its two-day meeting on Wednesday, and while no major policy
changes are expected, investors will pay close attention to comments from Chairman Jerome Powell.
Powell is likely to face questions over whether an improving labor market and rising coronavirus
vaccinations warrant a withdrawal of monetary easing. Most analysts though expect him to say such talk is
premature, which could put downward pressure on Treasury yields and the dollar.
OANDA's Moya said that while the Fed could stay the course this week, it could be a different story at
the June meeting given robust vaccine distribution and the optimism surrounding it.
"That will complicate the outlook for the dollar," Moya said. "The thought initially was that the Fed is
going to hold off, but it could move to taper in the fourth quarter. A lot of that could derail the dollar
view that its day of reckoning is here."
In midmorning trading, the euro fell 0.3% against the dollar to $1.2065 EUR=EBS after disappointing
euro zone data.
German business morale improved by less than expected in April as a third wave of COVID-19 infections
and problems with supply of components in the industrial sector seemed to slow the recovery in Europe's
largest economy.
Analysts however kept focusing on the general direction of travel of the economy, seen firmly on its way
out of the COVID-19 crisis.
"Notwithstanding the slight disappointment in today's figures, the April Ifo results combine with other
closely-watched surveys for the eurozone economy...in signalling momentum improvement at the start of Q2,"
commented economist Ricardo Amaro at Oxford Economics.
The dollar index =USD was up slightly at 91.914, recovering from an eight-week low.
Against the yen, the dollar was up 0.1% at 107.96 JPY=EBS .
The dollar also gained 0.2% versus the Swiss franc to 0.9151 franc CHF=EBS .
In emerging markets, the Turkish lira TRYTOM=D3 weakened to as much as 8.48 versus the dollar, close
to its record low of 8.58 reached in early November. The dollar though was last down 1.5% at 8.2950.
The lira is among the worst performers in emerging markets this year due to worsening relations with the
United States and worries about a dovish central bank governor
In the cryptocurrency market, bitcoin BTC=BTSP reclaimed the $50,000 mark, jumping 10% and on course
to snap five straight days of losses exacerbated by U.S. President Joe Biden's plan to raise capital gains
taxes for wealthy investors. It was last up 9.5% at $53,770.

========================================================
Currency bid prices at 10:17AM (1417 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.8880 90.8920 +0.00% 1.008% +90.9890 +90.6790
Euro/Dollar EUR=EBS $1.2073 $1.2097 -0.19% -1.19% +$1.2117 +$1.2061
Dollar/Yen JPY=EBS 107.9250 107.8600 +0.06% +4.45% +108.1600 +107.6500
Euro/Yen EURJPY= 130.28 130.46 -0.14% +2.65% +130.6600 +130.2200
Dollar/Swiss CHF=EBS 0.9151 0.9137 +0.20% +3.48% +0.9165 +0.9122
Sterling/Dollar GBP=D3 $1.3892 $1.3881 +0.09% +1.69% +$1.3929 +$1.3867
Dollar/Canadian CAD=D3 1.2410 1.2475 -0.51% -2.54% +1.2490 +1.2409
Aussie/Dollar AUD=D3 $0.7802 $0.7746 +0.72% +1.42% +$0.7802 +$0.7735
Euro/Swiss EURCHF= 1.1049 1.1052 -0.03% +2.24% +1.1071 +1.1046
Euro/Sterling EURGBP= 0.8688 0.8715 -0.31% -2.79% +0.8719 +0.8683
NZ NZD=D3 $0.7224 $0.7195 +0.40% +0.60% +$0.7227 +$0.7191
Dollar/Dollar
Dollar/Norway NOK=D3 8.2905 8.2895 +0.04% -3.43% +8.3110 +8.2720
Euro/Norway EURNOK= 10.0103 10.0500 -0.40% -4.36% +10.0516 +10.0104
Dollar/Sweden SEK= 8.3871 8.3776 -0.18% +2.33% +8.4040 +8.3658
Euro/Sweden EURSEK= 10.1243 10.1422 -0.18% +0.00% +10.1485 +10.1220

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