USD: Focus on the $58bn 3-year auction – ING

Source Fxstreet

Examining FX performance from both a spot and total return perspective over the last month reveals a bloc of four currencies that stand out. These are the Norwegian Krone, the Pound Sterling and the Australian and New Zealand Dollars. What does GBO have in common with these commodity currencies? High yields. Like the krone, sterling offers implied yields over 4% per annum. This is important because, by nature of the Fed's prolonged pause, the dollar also has yields at over 4% p.a. and taking a short position against the dollar will prove expensive unless investors get the timing right

Any good news is probably a USD positive

"Friday's US jobs data did not unleash another wave of pessimism on the US economy, and this week's US data calendar is light apart from tomorrow's release of May's CPI – which is expected at orderly/soft levels. Importantly, it doesn't seem that merely soft price data is enough to restart the Fed easing cycle. For instance, the Fed is probably looking at a 5-year, 5-year USD inflation swap and noting it at a very comfortable 2.5% – portraying no signs of recessionary/deflationary fears."

"On the radar, however, is tonight's $58bn 3-year Treasury auction. If there is growing interest in the de-dollarisation story, foreigners (who own around 25% of the outstanding Treasury supply) perhaps do not roll maturing Treasury holdings into new issues. The focus therefore will be on the indirect bid at the auction and also the general gauge of auction success, such as the bid-to-cover ratio and the tail. A poor auction could rekindle the weaker dollar story, where a pair like USD/JPY could lead the dollar lower in a more difficult environment for risk."

"There doesn't seem to be a big catalyst for DXY to move outside a tight 98.80 to 99.40 range today. However, look out for any updates on US-China trade talks. Any good news is probably a dollar positive in the current environment."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US Dollar Index holds losses near 98.50 ahead of Michigan Consumer SentimentThe US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is retracing its recent gains from the previous session and hovering around 98.50 during the Asian hours on Friday.
Author  FXStreet
7 Month 18 Day Fri
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is retracing its recent gains from the previous session and hovering around 98.50 during the Asian hours on Friday.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC nears all-time high, ETH eyes $4,000, XRP sets new recordBitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
Author  FXStreet
7 Month 18 Day Fri
Bitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
placeholder
WTI advances to near $66.50 following attacks on Iraqi OilfieldsWest Texas Intermediate (WTI) Oil price extends its gains for the second successive day, trading around $66.40 per barrel during the Asian hours on Friday. Crude Oil prices receive support from concerns over supply risks.
Author  FXStreet
7 Month 18 Day Fri
West Texas Intermediate (WTI) Oil price extends its gains for the second successive day, trading around $66.40 per barrel during the Asian hours on Friday. Crude Oil prices receive support from concerns over supply risks.
placeholder
Gold price extends range play amid mixed Fed rate cut cues; downside seems limitedGold price (XAU/USD) struggles to capitalize on the overnight bounce from the $3,309 area, or a one-week low, and oscillates in a narrow trading band during the Asian session on Friday.
Author  FXStreet
7 Month 18 Day Fri
Gold price (XAU/USD) struggles to capitalize on the overnight bounce from the $3,309 area, or a one-week low, and oscillates in a narrow trading band during the Asian session on Friday.
placeholder
Ethereum Road To $10,000: Replay Of May’s Playbook Predicts Another BreakoutAfter beating the resistance mounted at the $3,000 by bears for months now, the Ethereum price looks primed for a further breakout. Expectations currently are that the Ethereum price rally will
Author  NewsBTC
7 Month 18 Day Fri
After beating the resistance mounted at the $3,000 by bears for months now, the Ethereum price looks primed for a further breakout. Expectations currently are that the Ethereum price rally will
Related Instrument
goTop
quote