Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
US Dollar May Recover on Firmer Risk Appetite, Fed Beige Book

US Dollar May Recover on Firmer Risk Appetite, Fed Beige Book

Talking Points:

  • Aussie Dollar drops as bond sale hints at dovish shift in RBA bets
  • Yen falls as Japanese stocks rise, US Dollar corrects after selloff
  • Firmer risk appetite, sanguine Beige Book may boost Fed outlook

The Australian Dollar fell after a bond auction of 10-year notes saw yields declining even as demand cooled, hinting at dovish shift in investors’ RBA policy outlook. The average yield at the sale fell from 2.81 to 2.52 percent and the bid-to-cover ratio edged down from 3.55 to 3.24 compared with an offering of analogous paper in late March.

The Yen also fell as Japan’s benchmark Nikkei 225 stock index rose, putting pressure on the perennially anti-risk currency. The US Dollar traded broadly higher as prices digested after suffering the largest daily loss in a month in yesterday’s session. That came as risk aversion swept financial markets, pressuring Treasury bond yields lower and eroding confidence in the Fed’s wherewithal to continue tightening.

Looking ahead, a quiet day on the European economic calendar is likely to see investors looking ahead to the Fed Beige Book survey of regional economic conditions. A relatively sanguine tone may help push back against first-quarter slowdown fears, giving the greenback a lift as traders warm to idea of continued monetary stimulus withdrawal in the months ahead.

Improving sentiment may also help in this regard. Most European exchanges are edging up in early trade and S&P 500 futures are cautiously recovering, hinting that more of the same may be on offer once Wall Street comes online. Still, the fast-approaching first round of the French presidential election remains a potent source of concern and may yet sour investors’ mood.

Have a question about the currency markets? Join a Trading Q&A webinar and ask it live!

Asia Session

European Session

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES