Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Euro slips; U.S. dollar inches higher in volatile trading

ForexJul 22, 2021 21:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: South Korean won, Chinese yuan and Japanese yen notes are seen on U.S. 100 dollar notes in this picture illustration taken in Seoul, South Korea, December 15, 2015. REUTERS/Kim Hong-Ji 2/2

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) - The dollar edged higher overall in choppy trading on Thursday, moving with the ebbs and flows of risk sentiment, while the euro fell as investors digested the European Central Bank statement and comments by its president.

The U.S. currency hit its highest level in more than three months on Wednesday.

Risk appetite was mixed, with U.S. stocks ending slightly higher on the day, but Treasuries were well-bid, which pushed yields lower.

Despite the pullback in the dollar from 3-1/2-month peaks, it remains in demand among investors, analysts said.

"There is a lot of uncertainty whether you're looking at U.S. markets, global macro, COVID concerns, or whether you're looking at political risks," said Simon Harvey, senior FX market analyst at Monex Europe in London.

"I don't think this dislocation is going to clear in the short term, so I see the dollar remaining buoyant over the next few months," he added.

Earlier in the session, the greenback slid in the wake of higher-than-expected U.S. jobless claims data that raised concerns about the world's largest economy's recovery from the pandemic.

The euro, on the other hand, was firmer early in the day after the ECB met expectations by pledging to keep interest rates at record lows for even longer.

ECB President Christine Lagarde, in her media briefing, did not say anything to change the market's cautious outlook on the euro zone. She said a fresh wave of the coronavirus pandemic could pose a risk to the region's recovery, although she did offer a more balanced economic outlook.

The ECB's dovish pivot - which follows its recently released strategy review - at a time when many peers are mulling exiting pandemic-era stimulus is expected to keep the single currency under pressure.

Graphic: ECB inflation forecast annotated - https://fingfx.thomsonreuters.com/gfx/mkt/xklvyxrrepg/ECB%20inflation%20forecast%20annotated.JPG

In late afternoon trading, the euro was down 0.2% $1.1767, not far from a 3-1/2-month low of $1.1752 hit on Wednesday.

The dollar index, meanwhile, rose 0.1% to 92.852, as the impact of the U.S. jobless claims data faded.

Data showed initial claims for state unemployment benefits increased 51,000 to a seasonally-adjusted 419,000 for the week ended July 17, the highest since mid-May. Economists polled by Reuters had forecast 350,000 applications for the latest week.

Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, said the data risks pushing the Federal Reserve's tightening plans well into the future, putting further pressure on bond yields.

Growth-focused currencies such as the Australian dollar gained as a global risk sell-off abated further. The Aussie was last up 0.2% at US$0.7372.

Sterling firmed 0.4% to $1.3767, recovering from 5-1/2-month troughs, while in cryptocurrencies, bitcoin rose 0.4% to $32,287.

Bitcoin rose modestly after Business Insider reported that JPMorgan Chase & Co (NYSE:JPM) will allow all of its wealth management clients access to cryptocurrency funds.

The dollar slipped 0.1% against the yen, another safe haven, to 110.17 yen.

Euro slips; U.S. dollar inches higher in volatile trading
 

Related Articles

Dollar Slips After Powell's Dovish Tapering Comments
Dollar Slips After Powell's Dovish Tapering Comments By Investing.com - Jul 29, 2021

By Peter Nurse Investing.com - The dollar weakened in early European trading Thursday, falling to two-week lows after further indications that U.S. interest rate hikes are still a...

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.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
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.
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?
 
Post
 
Replace the attached chart with a new chart ?
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
or
Sign up with Email