Free Trial

Greenback Recoups Small Part of Recent Losses

  • The dollar trades to the better early Thursday, recouping a small part of the Wednesday losses through the first half of the session. The USD Index, however, remains shy of yesterday's highs at 105.087 - a break above which opens the multi-month high at 105.359.
  • ECB's Lagarde spoke to the Spanish public, but stuck to the recent comms of the central bank, clearly earmarking a further 50bps in rate hikes for the March meeting, before a switch to data dependency. The EUR trades to the middle of the table, with NZD the weakest performer having rallied substantially yesterday.
  • Higher than expected Eurozone CPI prompted little sustained response in the EUR. While inflation was ahead of expectations, the higher than expected German, French and Dutch releases this week provided a decent opportunity for markets to price in a hotter CPI print today.
  • JPY has been a focal point, with a Bloomberg sources report that Kuroda's final meeting at the helm of the Bank of Japan will result in a wait-and-see approach rather than any broader policy tweaks. The headlines prompted a swift, but brief, rally for USD/JPY to 136.76, before the day's trends resumed and the uptick fully reversed.
  • The data highlight Thursday is the weekly jobless claims releases from the US, while the central bank focus in on the Bank of England, with both Tenreyro and Pill of the MPC scheduled to speak.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.