Dollar on defensive, negative rates debate puts focus on Powell
The dollar was on the defensive against its rivals on Wednesday as traders looked to Federal Reserve Chairman Jerome Powell’s speech amid rising speculation the United States could one day adopt negative interest rates.
The New Zealand dollar fell to this week’s low after the country’s central bank expanded its asset purchase program and indicated readiness to take further steps — including negative interest rates.
The dollar traded at 106.89 yen, down 0.2% after reaching a peak of 107.76 on Tuesday, its highest since April 24. The euro changed hands at $1.0876, up 0.3% against the U.S. currency.
U.S. President Donald Trump on Tuesday again pushed the Federal Reserve to adopt negative interest rates, a hot topic in financial markets since last week when U.S. money market instruments started to price in a chance of negative rates.
Data showed on Tuesday U.S. consumer prices dropped 0.8% in April, the biggest since the Great Recession, raising the spectre of deflation as the economy sinks deeper into recession and fueling the debate about policy responses.
“I would advise against negative rates. Japan has done that but the perception here is that it wasn’t so good,” said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.
“But what’s worrying is that Trump is now talking about them. Looking at past examples, the Fed has eventually done what Trump wanted quite often.”
Powell will be speaking on current economic issues in a webcast hosted by the Peterson Institute for International Economics at 9:00 a.m. (1300 GMT).
Up until now, Fed officials have said they do not see a need to cut interest rates below zero and some market players expect Powell to stick to that script.
“If markets price in U.S. negative rates further, the Fed will need much more communication to rewind such market moves at a greater cost,” said Kazushige Kaida, head of FX sales at State Street Bank and Trust’s Tokyo Branch.
“I think his message is more likely to be something in the line that the Fed is focusing its efforts more on credit easing than negative rates.”
Still, investors think that will become an option especially if the coronavirus outbreak leads to further deterioration in the U.S. economy.
Top U.S. infectious disease advisor Anthony Fauci on Tuesday warned Congress that a premature lifting of lockdowns could lead to additional outbreaks of the deadly coronavirus.
His comments cast a shadow on optimism in financial markets in recent weeks that the worst period of the epidemic is over and the economy can only get better.
U.S. stock prices also slid, led by high-flying technology shares, adding to the cautious mood on the economic outlook.
That put a brake on a rally in risk-sensitive currencies such as the Australian dollar.
The Australian currency last stood at $0.6476, little changed on the day and off Monday’s one-week high of $0.6562.
The New Zealand dollar lost 0.5% to $0.6047, touching its lowest level this week, after the Reserve Bank of New Zealand’s policy announcement. It expanded asset purchase to NZ$60 billion from NZ$33 billion while its policy minutes said negative interest rates are a future policy option.
The British pound stood near its lowest levels in five weeks, pummeled also by continued confusion over government plans to ease lockdown measures, the worst Covid-19 death toll in Europe and revived Brexit risks.
Official data published on Tuesday showed Britain’s death toll from Covid-19 exceeded 40,000 as of early May, having overtaken Italy as the worst affected country in Europe.
Source: CNBC/Reuters
Comments (54)
hydroxychloroquine for covid
https://accutaneisotretinoine.com/ isotretinoina
hcqs pill https://www.pharmaceptica.com/
hydroxychoriquine https://plaquenilx.com/# hydroxychloroquine 200 mg twice a day
prednisone no prescription prednisone tablets
what is accutane isotretinoin
what is modafinil used for sunosi vs modafinil
sulfamethoxazole trimethoprim sulfamethoxazole dosage
prednisolon what is prednisone used for
buy modalert reddit modafinil mechanism of action
accutane accutane medication
trimethoprim 100mg trimethoprim antibiotic
… [Trackback]
[…] Find More Info here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Read More Information here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Info on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More Info here to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] There you can find 19594 more Information to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Here you can find 27806 additional Info to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Info to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More Info here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Read More Information here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Here you will find 3276 additional Information on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Read More Info here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Read More Info here on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Here you can find 31895 more Information on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Find More on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] Read More on on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
… [Trackback]
[…] There you can find 51107 additional Information on that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
Having read your blog, you obviously know what you are talking about. What a delight because I am also into PR Marketing, I’m sure visiting my page xrank.cyou will be worth your time!
… [Trackback]
[…] Information to that Topic: dayfinanceltd.com/dollar-on-defensive-negative-rates-debate-puts-focus-on-powell/ […]
Curious about accutane 5mg? Head over to accutane 5mg for more information.
buy accutane online from europe buy accutane
Where can I buy Accutane 20 mg online? https://isotretinoinex.website/
accutane medication accutane medicine singapore
Interested to purchase Accutane generic? Visit generic accutane for reliable sources.
Want to purchase generic accutane? Visit generic accutane for reliable sources.
pharmacy canadian accutane pharmacy canadian accutane buy cheap accutane uk
50mg accutane accutane medicine singapore
roaccutane for sale accutane 5mg dose
Is a 10 mg dosage of Accutane effective for treating acne? https://isotretinoinex.website/
order antivert 25 mg online cheap
buy antivert 25 mg for sale
buy meclizine online cheap
order antivert 25 mg pill
meclizine 25mg ca
antivert cost
buy meclizine 25mg online
oral meclizine 25 mg
meclizine 25 mg cost
antivert 25 mg cheap