The dollar recovered some ground as a rise in US government bond yields to their highest in seven weeks helped halt a run of losses that added up to the currency’s worst quarter since 2010.
- Government Bonds and the Dollar Find Support – Financial Times (subscription)
- Dollar Gets Squeezed from All Sides – Wall Street Journal (subscription)
Speculators cut net long positions in the US dollar to the lowest level in nearly a year, according to calculations by Reuters and Commodity Futures Trading Commission data.
After the worst start to a year for the greenback since 2006, the end of the first half couldn’t come quick enough for the dwindling ranks of dollar bulls. Yet if history is any guide, it could soon get even worse.
Sterling slipped back below $1.30 after weaker-than-expected data from Britain’s manufacturing sector led investors to think twice about whether the Bank of England will raise interest rates this year.
Growing signs that the European Central Bank could put an end to an era of easy money by raising interest rates helped power the euro to its best quarter in nearly seven years.
The Hong Kong dollar commemorated the 20th anniversary of the territory’s return to China with… a new low, breaking through HK$7.81 against the dollar for the first time in 18 months.
The yen erased gains as the focus returned to US economic data due this week after earlier surging on a local election loss in Tokyo by Prime Minister Shinzo Abe’s ruling party.
Sweden’s Riksbank is the next to watch, while easy BoJ money might further weaken the yen.
The US dollar’s share of global foreign exchange reserves edged lower in the first three months of the year, compared with the previous quarter, but the greenback remains the largest reserve currency held by global central banks, according to IMF data.
When the RBA board meets Tuesday – with policy expected to remain unchanged – they will find three Federal Reserve rate hikes in six months has sent the currency up almost seven percent.
There are clear reputational issues around the retail business.
Tapping money that the European Central Bank makes from issuing currency, and applying common energy or environmental taxes to imports were among the options put forward by Brussels in a paper on reforming the EU budget.
Christopher Giancarlo, head of the US Commodity Futures Trading Commission, said he will try to get US bank regulators to ease recent margin requirements that apply to US banks’ overseas affiliates engaging in uncleared swap transactions.
In its budget request for FY18, the US Commodity Futures Trading Commission (CFTC) has asked for additional funds to increase staffing and resources in order to address fintech innovation.
NEX Optimisation (Nex) has launched a fully automated settlement netting service to streamline the bilateral settlement netting process for market participants.
Several British banks have stopped trading Qatari riyals for retail customers, as the extended diplomatic crisis in the Gulf puts growing pressure on the currency.
The cost of buying or selling the digital currency recently hit an all-time high, making day-to-day transactions like buying a cup of coffee impractical.
The Canadian dollar hit a nine-month high against its US counterpart, boosted by higher oil prices and domestic growth which supported the Bank of Canada’s recent switch to a more hawkish stance.
One euro now buys CZK26.24, set against the earlier peg of CZK27 – an orderly break to a currency-management policy by any standards.
Central European currencies mostly firmed as June manufacturing data showed continuing economic growth in the region.