Commodity News
HeadLine : Dollar creeps higher as Fed's taper looms
Date : Sep 20 2021
The dollar began the week firmly on Monday with investors in a cautious mood ahead of several central bank meetings, headlined by the Federal Reserve, while looming catastrophe at indebted developer China Evergrande added to markets’ fragility. In thin trade, owing to holidays in Japan and China, the euro nursed losses from its weakest week in a month, slipping slightly to touch a four-week low of $1.1721. The U.S. dollar index rose very slightly to a month-high 93.263. The yen held at 110.01 per dollar. The week brings central banks in Japan, the UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary as well as elections in Canada and Germany -- though traders are mostly focused on the Fed. The Fed concludes a two-day meeting on Wednesday and markets’ consensus is that it will stick with broad plans to begin tapering this year but will hold off providing details or a timeline for a at least a month. Creeping U.S. yields, however, which at the 10-year tenor rose for a fourth straight week last week point to risks of a hawkish surprise or a shift in projections to show hikes as soon a 2022, both of which could support the dollar. Among the other major central banks the Bank of England is expected to leave policy settings unchanged, but traders see potential for gains in the currency if the bank adopts a hawkish tone or more members being calling for asset purchase tapering. 

Source: Reuters
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