Global Stock Markets
The dollar rebounded from four-week lows against the yen on Thursday,
as global markets regained some of their risk appetite after a sharp
sell-off in stocks and the greenback over the past week.
But against a basket of currencies, the greenback was flat, having fallen to its lowest in almost four weeks on Wednesday - a severe correction from the uptrend that began in early September on hopes of a tax cut deal.
A U.S. Senate Republican tax plan drew fire from two Republican lawmakers on Wednesday in a possible sign of trouble for the sweeping measure, given the party can afford to lose no more than two votes to pass the legislation.
For the moment, the U.S. tax cuts will be the main theme of the markets.
U.S. stocks and high-yield bonds, which had also rallied on hopes of tax cuts and the prospects of a solid U.S. economic growth, extended their losses on Wednesday, which had also further dampened dollar sentiment. Positive U.S. consumer inflation and retail sales data were not enough to change the mood.
With the dollar facing headwinds, the euro also traded flat at $1.1793, having recovered around 1 percent so far on the week and having reached as high as $1.1862 on Wednesday, its best level in over one month.
The Australian dollar bounced from near five-month lows as a mostly upbeat local employment report triggered a round of short-covering.
The Aussie traded up 0.1 percent at $0.7597, almost flat on the day, having plumbed a low of $0.7567, a trough last seen in late June.
As share prices rebounded across Asia and Europe,
the dollar climbed around 0.2 percent to 113.09 yen, up from lows of
112.47 yen on Wednesday.
But against a basket of currencies, the greenback was flat, having fallen to its lowest in almost four weeks on Wednesday - a severe correction from the uptrend that began in early September on hopes of a tax cut deal.
A U.S. Senate Republican tax plan drew fire from two Republican lawmakers on Wednesday in a possible sign of trouble for the sweeping measure, given the party can afford to lose no more than two votes to pass the legislation.
For the moment, the U.S. tax cuts will be the main theme of the markets.
U.S. stocks and high-yield bonds, which had also rallied on hopes of tax cuts and the prospects of a solid U.S. economic growth, extended their losses on Wednesday, which had also further dampened dollar sentiment. Positive U.S. consumer inflation and retail sales data were not enough to change the mood.
The Fed is expected to
raise rates again in December. But beyond this year, U.S. interest rate
futures were pricing in a slightly smaller chance of a rate hike early
in 2018 than before Wednesday’s data.
With the dollar facing headwinds, the euro also traded flat at $1.1793, having recovered around 1 percent so far on the week and having reached as high as $1.1862 on Wednesday, its best level in over one month.
The Australian dollar bounced from near five-month lows as a mostly upbeat local employment report triggered a round of short-covering.
The Aussie traded up 0.1 percent at $0.7597, almost flat on the day, having plumbed a low of $0.7567, a trough last seen in late June.
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