Breaking News

FOREX-Dollar poised for best week in 15 months amid market turmoil

ForexFeb 09, 2018 22:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
FOREX-Dollar poised for best week in 15 months amid market turmoil

* Euro on course for worst week since November 2016

* Dollar backs off four-month lows vs yen as safe-haven bids fade

* Strategists expect dollar weakness to resume despite rally

* Currency market volatility rises less than stocks, bonds (Updates market action, changes dateline, previous LONDON)

By Richard Leong and Kate Duguid

NEW YORK, Feb 9 (Reuters) - The dollar rose on Friday, putting it on track for its strongest week against a basket of currencies in nearly 15 months as some traders piled into the greenback in a week of tremendous swings felt in stock and bond markets around the world.

The U.S. currency stemmed its protracted decline this week. Some traders have bought it to close out their bets on its weakness, while others favored the dollar in a safe-haven move over higher-returning but riskier currencies, analysts said.

"Overall, it's just a highly volatile environment where the idiosyncratic things that drive (the market) - fundamentals, economic data - are taking second stage Everything is becoming much more correlated in a very volatile environment," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York.

The dramatic moves in equities and bonds this week were stoked by concerns about signs of inflation amid an improving global backdrop and speculation whether the Federal Reserve and other major central banks would act quicker to raise interest rates.

Equity and bond market volatility .VIX has surged this week. While foreign exchange markets EUR1MO= JPY1MO= have been calmer, the turbulence was enough to upend some popular trades, analysts said.

Betting on the dollar weakening against the euro has been one of them, with an expanding euro zone economy stoking expectations the European Central Bank will shrink its balance sheet sooner than expected.

The single currency was last down 0.08 percent at $1.2235, marking a 1.7 percent drop this week which would be its steeply weekly decline since November 2016, Reuters data showed.

The greenback stabilized versus safe-haven currencies after Thursday's decline.

It rebounded from a four-month low to 108.66 yen, down 0.07 percent JPY= . It was up 0.47 percent at $0.9402 Swiss franc CHF= .

Against a basket of six major currencies, the greenback was up 0.21 percent at 90.420. On the week, the dollar index .DXY has risen 1.41 percent for its best week in almost 15 months.

The dollar's advance was supported by some stabilization in U.S. stock prices, a day after heavy selling sank the Dow .DXY and S&P 500 .SPX into correction territory. bond market also calmed from its wild moves earlier this week. Benchmark 10-year Treasury yield US10YT=RR was 1 basis point lower on the day at 2.838 percent, which was below a four-year peak of 2.885 percent on Monday.

The dollar also received support after Congress and U.S. President Donald Trump approved a federal budget plan that ended an overnight federal shutdown. ========================================================

Currency bid prices at 11:33AM (1633 GMT) Description



U.S. Close Pct Change


High Bid

Low Bid











+1.2228 Dollar/Yen






+109.3000 +108.5100 Euro/Yen






+134.1600 +132.8300 Dollar/Swiss







+0.9350 Sterling/Dollar GBP=






+1.3787 Dollar/Canadian CAD=






+1.2560 Australian/Doll AUD=






+0.7760 ar








+1.1459 Euro/Sterling







+0.8778 NZ Dollar/Dolar NZD=






+0.7200 Dollar/Norway







+7.9022 Euro/Norway







+9.6922 Dollar/Sweden







+8.0884 Euro/Sweden








<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2018



FOREX-Dollar poised for best week in 15 months amid market turmoil

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email