· Dollar off to firm start as focus shifts to jobs data
The dollar held firm on Monday as investor focus shifted to the U.S. labour market, following softer-than-expected inflation data last week that has done little to soothe concerns about the Federal Reserve dialling down its monetary stimulus.
The dollar’s index against six other major currencies rose 0.1% to 91.870, having recovered from Friday’s low of 91.524 hit in the wake of the inflation readings.
The euro fell 0.1% to $1.1923, as it struggled to recover the $1.20 level, while the dollar hovered at 110.67 yen, not far from Wednesday’s 15-month high of 110.105.
December 2022 Fed funds rates futures are almost fully pricing in a 0.25 percentage point rate hike by the end of next year and speculators had cut the value of bets against the dollar, or short bets, by the most in six months last week.
Elsewhere, cryptocurrencies hung on to a bounce from weekend lows, but were tracking towards a second consecutive monthly loss. Bitcoin last traded at $34,281, while ether fetched $1,973, not far from Tuesday’s three-month low of $1,700.
· China's yuan dips as Fed tightening worries lift dollar
Spot yuan opened at 6.4610 per dollar and was changing hands at 6.4623 at midday, 73 pips weaker than Friday's late session close.
· 10-year Treasury yield eases slightly but holds above 1.51% to start the week
The 10-year U.S. Treasury yield eased slightly on Monday morning but held above 1.51% as investors digested a rise in a key inflation indicator index.
The yield on the benchmark 10-year Treasury note fell less than a basis point to 1.516% at 3:45 a.m. ET. The yield on the 30-year Treasury bond fell to 2.143%. Yields move inversely to prices.
Reference: Reuters, CNBC
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