US Dollar Falls as Geopolitics, Q1 Slowdown Bets Cool Fed Outlook

Talking Points:

  • US Dollar falls as risk aversion, Q1 slack fears hole Fed outlook
  • Japanese Yen, New Zealand Dollar gain on changeable produce spreads
  • Fed’s Fischer might offer USD a lifeline, SP 500 futures indicate lower

The US Dollar underperformed in overnight trade as risk hatred as geopolitical jitters cooled Fed rate travel expectations. Stocks in Japan and China fell and Treasury holds rose amid worries about escalating tensions with North Korea.

Dour mercantile news-flow substantially compounded vigour on a greenback. An refurbish of a Atlanta Fed’s GDPNow model following Friday’s retail sales and CPI figures showed US outlay might supplement only 0.5 percent in a initial quarter, imprinting a weakest opening in a year.

The Yen and New Zealand Dollar valid many means to capitalize. While a dual currencies are during conflicting ends of a G10 FX produce spectrum, their place on a relations extremes can make them quite supportive to changes in rate spreads. Souring view was doubly useful for a anti-risk Japanese unit.

Looking ahead, many European bourses will sojourn sealed in tact of Easter Monday though SP 500 index futures are indicating decidedly lower. This suggests that a risk-off mood is expected to continue to conclude cost movement as Wall Street comes online.

A still mercantile information calendar will produce a spotlight to scheduled comments from Fed Vice Chair Stanley Fischer. The beleaguered US banking might find a salvation if he continues to allege a partially hawkish account envisioning serve rate hikes and maybe even change piece rebate before year-end.

What do sell traders’ buy/sell decisions spirit about a US Dollar cost trend? Find out here!

Asia Session

US Dollar Falls as Geopolitics, Q1 Slowdown Bets Cool Fed Outlook

European Session

No data.

** All times listed in GMT. See a full DailyFX mercantile calendar here.

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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