Dollar continues rally, hits 3-month high vs yen
Dollar tops 153 vs yen
Bank of Canada cuts rates by 50 bps, as expected
Fed's Beige Book shows little change in economic activity
Updated at 3:05 pm ET/1905 GMT
By Chuck Mikolajczak
NEW YORK, Oct 23 (Reuters) -The dollar climbed above153 against the yen for the first time in nearly three months on Wednesday on U.S. economic strength and anexpected divergence among major global central banks' pace of interest rate cuts.
The greenback is on track for its 16th gain in 18 sessions and fourth straight week of gains as a run of positive economic data has dampened expectations about the size and speed of rate cuts from the Federal Reserve, which has pushed U.S. Treasury yields higher.
The yield on benchmark U.S. 10-year notes US10YT=RR rose 3.4 basispoints (bps) to 4.24%, after hitting a 3-month high of 4.26%. After declining for five straight months, the yield on the 10-year is up about 40 basis points for October.
Investors were also positioning ahead of the U.S. presidential election on Nov. 5.
"We've gone from phase one to phase two, if you like, the phase one being that the recovery being all about the U.S. economy, the strong data that we've had coming out over the past month or so... and this second phase could be all about politics," said George Vessey, lead FX strategist at Convera in London.
"But the bias for a stronger dollar in the short term probably from here is going to be more of potential Trump hedges rather than the rate story which arguably is overblown, but having said that you continue to see yields surging higher."
The dollar index =USD, which measures the greenback against a basket of currencies, rose 0.32% to 104.43, after climbing to 104.57, its highest since July 30. The euro EUR= was down 0.18% at $1.0778 after dropping to $1.076, its lowest since July 3. Sterling GBP= weakened 0.49% to $1.2919.
Recent comments from Fed officials have indicated the central bank will take a gradual approach to cutting rates.
The central bank's "Beige Book" released on Wednesday showed economic activity waslittle changed from September through early October while firms saw an uptick in hiring, continuing recent trends that have reinforced expectations the Fed will settle on a smaller 25-basis-point cut at its November meeting.
Markets are pricing in an 88.9% chance for a cut of 25 basis points at the Fed's November meeting, with an 11.1%chance of the central bank holding rates steady, according to CME's FedWatch Tool. The market was completely pricing in a cut of at least 25 bps a month ago, with a 53% chance of a 50 bps cut.
The upcoming U.S. presidential election also continues to drive currency moves, as market expectations have grown in recent days for a victory by Republican presidential candidate and former President Donald Trump, which would likely bring about inflationary policies such as tariffs.
The Bank of Canada on Wednesday cut its key benchmark rate by 50 basis points to 3.75%, as was widely expected by the market, its first bigger-than-usual move in more than four years, and hailed signs the country has returned to an era of low inflation. The Canadian dollar CAD= was 0.14%weaker versus the greenback to 1.38 per dollar.
European Central Bank (ECB) President Christine Lagarde said on Wednesday the central bank will need to be cautious when deciding on further interest rate reductions and take its cue from incoming data.
In addition, ECB chief economist Philip Lane said the recent flow of relatively weak data on the euro zone economy has raised questions about the bloc's prospects but the European Central Bank still expects the recovery to take hold.
Against the Japanese yen JPY=, the dollar strengthened 0.99% to 152.56,on track for its biggest daily percentage gain since Oct. 4, after climbing to 153.18, its highest since July 31, when theBank of Japan raised interest rates to their highest since 2007.
Japan is set to hold a general election on Oct. 27. Recent opinion polls indicated that the ruling Liberal Democratic Party could lose its majority with coalition partner Komeito.
The risk of a minority coalition government has raised the prospect of political instability complicating the Bank of Japan's effort to reduce dependence on monetary stimulus.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Chuck Mikolajczak; Editing by Emelia Sithole-Matarise and Marguerita Choy
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
