- Asian session review: the dollar rose slightly against the major currencies
Market news
Asian session review: the dollar rose slightly against the major currencies
| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|---|---|---|---|---|---|
| 01:30 | Australia | National Australia Bank's Business Confidence | March | 18 | 15 | |
| 03:00 | China | Trade Balance, bln | March | 103.25 | 52.05 | 13.8 |
| 06:00 | United Kingdom | Manufacturing Production (YoY) | February | -5% | -5.1% | -4.2% |
| 06:00 | United Kingdom | Industrial Production (YoY) | February | -4.3% | -4.5% | -3.5% |
| 06:00 | United Kingdom | Industrial Production (MoM) | February | -1.8% | 0.5% | 1% |
| 06:00 | United Kingdom | Manufacturing Production (MoM) | February | -2.2% | 0.5% | 1.3% |
| 06:00 | United Kingdom | GDP m/m | February | -2.2% | 0.6% | 0.4% |
| 06:00 | United Kingdom | Total Trade Balance | February | -3.4 | -7.1 | |
| 06:00 | United Kingdom | GDP, y/y | February | -9.2% | -7.8% |
During today's Asian trading, the US dollar strengthened on the back of rising US Treasuries yields.
The market is focused on the March data of the US Department of Labor on the consumer price index, which will be released at 12:30 GMT. Experts expect increased inflation in the United States against the background of new fiscal stimulus and the continuation of the soft monetary policy of the Federal Reserve System (Fed). The forecast calls for an acceleration in consumer price growth in March to 2.5% in annual terms, compared with 1.7% in February.
Experts note that the increase in inflation will strengthen expectations of a faster than currently projected reduction in the Federal Reserve's stimulus measures, which will support the dollar. If the rate of inflation is below expectations, we can expect a reverse reaction of the dollar, analysts say
U.S. Treasury bond yields are rising in anticipation of the Labor Department's inflation data. An increase in interest rates on US treasury bonds traditionally supports the dollar - the higher the rates, the more attractive the US currency is for buyers. The yield on 10-year US Treasuries on Tuesday is 1.701%, compared with 1.669% at the close of the previous session.
The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.08%.
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