The dollar was headed for its best week in nearly nine months on Friday as investors have scrambled to price in a sooner-than-expected ending to extraordinary U.S. monetary stimulus in the days after a surprise shift in tone from the Federal Reserve.
In the two sessions since Fed officials projected possible rate hikes in 2023, the greenback has busted from recent ranges and surged about 1.8% against the euro, even further against the Aussie and more than 1% against sterling and the kiwi.
"We can now see an end point to zero rates ... and they've told us in very plain-speaking English that they've commenced the conversation on how to commence tapering," he said. The Australian dollar parked at $0.7555, also near the two-month trough of $0.7540 that it hit overnight. "The viciousness with which the dollar has bounced back, the impulsive nature of it, tells me that there's been a decisive shift for a lot of big, stale positions," said Franulovich.
Treasuries sold heavily - especially at the five- and 10-year tenors - but the U.S. yield curve has flattened overnight as traders seem hopeful that a more aggressive Fed could move more quickly to head off inflation.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asia circles the wagons ahead of Fed, oil eyes 2019 highAsian shares retreated slightly on Wednesday with investors wary of any hint of hawkishness from the U.S. Federal Reserve given lofty asset valuations rely so heavily on an endless supply of super-cheap money.
Read more »
Stocks fall from records ahead of Fed decision on ratesU.S. stocks slipped from their record heights Tuesday as investors wait to hear whether the Federal Reserve will give any clue about when it may let up on its massive support for markets.
Read more »
Stocks fall, bond yields rise as Fed discusses dialing back supportAsian stock markets have followed Wall Street lower after the Federal Reserve indicated it might ease off economic stimulus earlier than previously thought
Read more »
WHO warns of fresh Indonesia surge fed by virus variantsJAKARTA, Indonesia (AP) — Indonesia’s president ordered authorities to speed up the country's vaccination campaign as the World Health Organization warned Thursday of the need to increase social restrictions in the country amid a fresh surge of coronavirus infections caused by worrisome variants.
Read more »
The Fed expects to raise rates sooner than you'd thinkThe Federal Reserve expects to raise interest rates in 2023, an announcement made during the most recent policy meeting. ClareCNN reports.
Read more »
After traders get past this tricky Fed meeting, a confusing second half awaitsEven if the Fed adopts a best-case scenario, the market has a big problem: traders don't know where we are in the economic cycle.
Read more »