Trumped-up US dollar Stabilize before Thanksgiving Obama
Dollar index trades below earlier week's 13-half year high
China's offshore Yuan touched record low
Greenback pauses following sharp rally over last 2 weeksUK, Nov 23, the dollar stabilized close to a recent 13-half year peak on Today, taking a breather before the US Thanksgiving holiday after adjusting on expectations that a Trump administration will boost growth & force up the US interest rates.
China's offshore Yuan cut down to a record low of CNH=D3 as traders deal with with signs of accelerating capital outflows in the wake of Trump’s shocked US election win. CNY/ The dollar index .DXY - which tracks the greenback across 6 key currencies - has mounted almost 3% from Trump's victory 2 weeks before, but has edged little bit lower this week after touching its highest levels since last 2003.
Investors are gambling the dollar will be strengthened by Trump's ideas for fiscal stimulus, which might headed towards the Fed to raise interest rates faster than had been expected because of increased inflation & for infrastructure contributing & the repatriation of profits secured overseas. The dollar was horizontal in position today across both the euro (EUR) & yen (JPY) before Thursday's Thanksgiving holiday.
The dollar is catching a pause but with fair reason, the US is on holiday tomorrow and it's going to be a very light day the day afterwards, told Citi's head of G10 currency strategy in UK, Richard Cochinos. For the reason of the holiday, there's always this concern that probably we should just lighten our disclosure into it."
Investors will potentially end up return on Monday to retarget not so much on the dollar and the US story but more what are their anticipations for Europe moving forward.
The euro is covering a host of political risks in the coming months, from an Italian constitutional referendum in less than 2 weeks to French & German elections in 2017 which are seen as likely to move the euro much lower. The primary currency traded at 1.0616$ on today, nearly an 11-month low of 1.0569$ hit previous week.
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