Dollar Up, Investors Expect US Inflation Trajectory From Investing.com

By Gina Lee

Investing.com – The dollar went Monday morning in Asia. Risk currencies have remained above their recent lows against the U.S. currency and the yen as investors fear slowing the global economic recovery from COVID-19 to calm for now.

Those who traced the green dollar against a basket of other currencies rose 0.03% to 92,148 from 11:56 PM ET (3:56 AM GMT).

The pair increased 0.01% to 110.16. Data released earlier in the day says J grew a better-than-expected 7.8% and 12.2% in May. The data also showed that the country’s producer price index (PPI) grew 5% and 0.6% in June, respectively.

The pair went from 0.12% to 0.7476 and across the Tasman Sea, the pair fell from 0.23% to 0.6979. New Zealand e-card retail sales grew 4% and 0.9%, both lower than their previous figures.

The pair decreased 0.07% to 6.4741, with Chinese trade data, including, and up, due to be released later in the week.

The pair increased 0.03% to 1.3904.

Investors ’attention has turned to U.S. inflation and when the country’s Federal Reserve will begin tightening its monetary policy ahead of the June release on Tuesday. Fed Chairman Jerome Powell will also testify before the Senate Banking Committee later in the week.

“If we look at strong data, the Fed could advance its projection for its first rate hike beyond its current forecast of 2023. It will also mean that they should end their decline sooner,” he said. Barclays (LON 🙂 senior FX strategist Shinichiro Kadota told Reuters.

A recovery in risk sentiment has hampered the yen certainly ahead of the release of the U.S. CPI and the. If the data indicates that inflation is more persistent than previously thought, the Fed could begin to lower assets earlier than expected and raise the dollar.

However, more benign data will benefit more risky values ​​as the decline in activity will begin later than expected in this scenario. Risk values ​​were lower earlier in the previous week, as disappointing economic data from several countries led to a decline in investor stakes.

Recent outbreaks of COVID-19, including the Delta variant of the virus, have led to renewed restrictive measures in countries including Australia and South Korea and have added to an already cautious mood.

However, the selloff has declined since Friday, and investor sentiment has improved further after the People’s Bank of China cut its reserve requirements ratio for banks altogether in a surprise move to bolster the economic recovery. COVID-19 China.

In crypto currencies, movements were small with bitcoin at $ 34,267 and ether at $ 2137.