Consequentlythe dollar on Thursday starred in its biggest daily decline since the end of 2015 for him collapse of the performance of Treasury bondwhile other currencies – the yen and the pound sterling, in particular – soared.
In parallel, stocks soared in wall streetin particular the technological ones, which have just experienced falls of up to 24% after the publication of their quarterly balance sheets, saw the data with relief, because it may imply a more slight rise in interest rates by the Federal Reserve.
The risk appetite of investors received a extra boost when the health authorities China eased some of the strict restrictions imposed by COVID-19 in the country, including reducing quarantine times for close contacts of cases and incoming travelers.
The dollar’s long rally over the past two years has drawn a lot of interest in the greenback, prompting massive positioning, and Thursday’s data had many looking for a quick exit, specialists say.
Against a basket of currency pairs, the dollar is down 3.8% over the past two sessions, marking its biggest two-day percentage decline since March 2009.
“It’s not just the short-term trend-followers and momentum players that have to exit their positions, but some long-term structural positions in the dollar have to unwind,” said Marc Chandler, chief market strategist. of Bannockburn Global Forex in New York.
The dollar was down 1.7% against the Japanese yen to 138.55 yen, while the euro rose 1.46% against the greenback to $1.036.
The dollar found little support in survey data released on Friday, which showed that US consumer confidence fell in November, dragged down by persistent concerns about inflation and rising borrowing costs.
The risk-sensitive Australian and New Zealand dollars advanced more than 1% against the greenback.
Source: Ambito
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