Tuesday February 10, 2015 - 00:50:25 GMT
Share This Story
Reuters - www.reuters.com
FOREX-Commodity currencies recoup ground as US dollar rally fades
* Loonie & kiwi among best performers in lacklustre
* US dollar consolidates payrolls-inspired gains
* China inflation data next in focus
By Ian Chua
SYDNEY, Feb 10 (Reuters) - Commodity currencies held onto
modest gains early on Tuesday, having risen broadly on a further rebound in oil
prices and as the U.S. dollar faded somewhat after a payrolls-inspired rally
ran out of steam.
The Canadian and New Zealand dollars were among the best
performers in a session that saw all the major currencies remain well within
The greenback eased to C$1.2428 from a session high of
C$1.2545. The kiwi popped above 74 U.S. cents from $0.7325, staying in a
$0.7288-0.7453 range seen in the last few days.
"Very little in the way of data or developments to
drive markets left higher oil as a key focus, which helped lift CAD and other
commodity currencies to the top of the performance rankings," said Greg
Moore, senior currency strategist at RBC Capital Markets.
"The euro was not impacted much by ongoing headlines on
Greek Deputy Prime Minister Yannis Dragasakis said on Monday
negotiations were ongoing with the European Union over the country's debt and
bailout problems, but that no agreement had been reached.
The common currency bounced back to $1.1326, having found
support at a one-week trough of $1.1270 on Monday.
Against the yen, the common currency fell as far as 133.67
before recovering to 134.31. The dollar eased to 118.54, giving back about a
third of Friday's 1.4 percent rally to 119.23.
All that left the dollar index a tad softer at 94.568.
Still, it remained not far from an 11-year peak of 95.481 scaled last month.
Speculation that the Federal Reserve will hike interest
rates sometime this year has been a pillar of the dollar's rally that started
around the middle of 2014.
In recent weeks, doubts grew that the Fed will actually be
able to tighten at a time when other major central banks were easing. But surprisingly
strong payrolls data last Friday put the risk of a 2015 hike back in play.
Dallas Fed President Richard Fisher, an outspoken hawk,
reiterated that he expects the Fed to raise rates "some time this
Asia, the focus will be on China's inflation data for January due at 0130 GMT.
A soft number is likely to fuel worries about economic growth, but should also
give policymakers room to inject more stimulus. So such an outcome could be
viewed positively by markets.
© Thomson Reuters 2015. All rights reserved.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."