Dollar Dips As Crude Oil Surge Supports Commodity Currencies

www.oann.com | 5/3/2018 | Staff
TOKYO (Reuters) – The dollar was shackled on Tuesday by a combination of weak U.S. economic data and gains for commodity-linked currencies such as the Canadian and Australian dollars which drew support from an extended surge in crude oil prices.

The dollar index against a basket of six major currencies inched down 0.05 percent to 97.001 after losing 0.35 percent the previous day, marking its biggest daily decline since March 20.

Top - Pressure - Currencies - Dollar - Data

On top of the pressure from buoyant commodity-linked currencies, the dollar was weighed by data showing U.S. durable goods orders declined in February and a bounce in the euro as investors squared positions ahead of a looming European Central Bank meeting.

“The dollar’s strength peaked out towards the end of last week, when the U.S. jobs data showed that wage increases had slowed. The currency hasn’t been able to find traction since,” said Shin Kadota, senior strategist at Barclays in Tokyo.

Bounce - US - Yields - Lift - Dollar

“And the latest bounce in U.S. yields did not provide much lift for the dollar as they still remain at low levels in absolute terms.”

The 10-year Treasury yield bounced to 2.52 percent, edging further away from a 15-month low of 2.34 percent plumbed at the end of March. The yield was still significantly below its recent highs around 2.8 percent hit in early March.

Dollar - C - Dollar - Percent - Overnight

The Canadian dollar was little changed at C$1.3312 per dollar after gaining more than 0.5 percent overnight.

The Australian dollar was steady at $0.7128 having risen 0.3 percent the previous day.

Themes - US-China - Trade - Talks - Brexit

“Themes such as U.S.-China trade talks and Brexit...
(Excerpt) Read more at: www.oann.com
Wake Up To Breaking News!
Hell sometimes looks an awful lot like an office cubicle.
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!