© Reuters.
Por Peter Nurse
Investing.com – The US dollar lost ground at the start of trading in Europe on Monday, as hopes that China’s easing of restrictions could boost global growth boosted risk sentiment.
At 9:55 AM ET, the , which tracks this currency against a basket of six other majors, is down 0.5% at 102.660, pulling away from two-decade highs seen in mid-2019. may.
The dollar, considered a safe haven, seems to have run out of steam with the increase in risk sentiment, boosted by the news that Shanghai, China’s commercial center, will end the confinement of the city and return to a more normal life. starting June 1.
In addition, Beijing authorized an unexpected rate cut last week, which has been interpreted as a sign that the Chinese authorities are going to lend support to the world’s second largest economy.
“The dollar index could correct its course a bit lower, to 102.30, but we believe that this is a consolidation of the bull market, rather than a signal that it is going to top,” say analysts at ING (AS: ) in a note. “Until the Fed pours cold water on tightening expectations, the dollar should not top out.”
The pair is down 0.5% to the 6.6592 level, with the pair continuing the decline after the yuan had its best week since late-2020 last week.
The risk-sensitive Australian and New Zealand dollars hit multi-week highs, rising 1.1% to 0.7111 and 1.2% to 0.6467.
Australia elected a new government on Saturday, but this is not expected to affect the Reserve Bank of Australia’s thinking on monetary policy. He is expected to raise his by 50 basis points on Wednesday.
The pair is up 0.5% to the 1.0608 level ahead of the key May release.
The pair is up 0.7% to the 1.2573 level as the UK property market continues to show strength. UK house sales prices have hit record highs for the fourth consecutive month, according to data from property company Rightmove, rising 2.1% in May, the highest level recorded for a May since 2014. .
Attention later this week will be on Wednesday’s release of the Federal Reserve’s latest meeting, as traders look for clues as to whether the US central bank can rein in an aggressive four-decade-high without bringing the economy to a standstill. the recession
The Fed has already raised interest rates by 75 basis points since March and markets are expecting 50 basis point hikes in June and July.