Dollar finds footing as looming data

SINGAPORE (Reuters) – FX Signals / The dollar drifted higher in the Asia session on Tuesday, pausing a monthlong decline as investors weigh whether a roaring U.S. economic recovery may force interest rates higher and are looking to upcoming economic data and policy speeches for clues.

The greenback rose about 0.2% against the yen, euro and pound in trade thinned by holidays in China and Japan. It stepped up slightly further against the trade-sensitive Australian and New Zealand counterparts while the dollar index against a basket of major rivals added 0.2% to 91.151.

The advances partly reverse Monday’s losses and leave the index about 0.8% above a one-month low struck last week. Traders said its next moves hinge on U.S. labour data due Friday and clues in the interim about the thinking of Federal Reserve policymakers.

The euro last sat at $1.2036 while a dollar bought 109.29 yen. The Aussie dollar was 0.3% softer at $0.7740 and the kiwi down 0.4% to $0.7171. [AUD/]

“Markets will not be comfortable pushing the dollar all the way down given this in-your-face U.S. outperformance, and how much longer this may last given outbreaks happening elsewhere,” said Mizuho economist Vishnu Varathan in Singapore.

Dallas Fed President Robert Kaplan caused a stir on Friday by calling for beginning the conversation about tapering. He is due to appear again at a Q&A session at 1700 GMT on Tuesday and a slew of Fed speakers are scheduled to talk in coming days.

Sterling gains dollar on back foot

“Non-voting hawks like Kaplan and (Loretta) Mester could repeat Kaplan’s call for a conversation about tapering,” Westpac analysts said in a note.

“The Fed’s dovish influential core won’t have any of it, but expectations for solid U.S. data this week and likely more hawkish regional Fedspeak leave the dollar index positioned for more two-way price action.”

Forex – Dollar Weakens as Risk

Elsewhere central bank meetings are coming in to focus. The Aussie dollar was unmoved by an expected decision from the Reserve Bank of Australia on Tuesday to leave policy settings unchanged. The bank did, however, upgrade some headline economic forecasts and more detailed projections are due on Friday.

Dollar Just Lower than predicted

Sterling dipped marginally to $1.3870 with a Bank of England meeting on Thursday the main event in traders’ diaries. Analysts reckon the bank might announce a slowdown in its bond buying programme as vaccinations have bolstered Britain’s economy.

Forex Signals Dollar finds footing

“The rapidly improving economic outlook in the UK amid general dollar weakness may just be the catalyst to move sterling back above 1.40 in the coming weeks,” said Commonwealth Bank of Australia (OTC:CMWAY) analyst Kim Mundy.

Elsewhere cryptocurrency ether powered to another record peak, this time nearing $3,500 as speculators drive white-hot crypto markets higher. It last sat at $3,373.

Forex Signals – Dollar Holds Near Session Highs

Dollar finds footing as looming data

Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals Learning Guides below with guide you with every trade you make! FxPremiere Group has helped over 5,000 Forex Affiliates earn up to $800 CPA on referrals and has grown immense revenue streams for online affiliates. Trading Forex has never been easy. The World of Forex Trading is growing day by day and its crucial to keep up to date with trends and market analysis. Here at FxPremiere Group we keep you updated with the Compare Forex Brokers charting system, as well as sending you Direct Forex Signals by our Telegram Services globally daily.

FX Signals

The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.Forex Signals Telegram SignalsWith our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.

Dollar finds footing as looming data