Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Dollar slips, riskier currencies gain as market rebounds

2022 07 25T011239Z 1 LYNXMPEI6O016 RTROPTP 4 GLOBAL FOREX - Global Banking | Finance

By Elizabeth Howcroft

LONDON (Reuters) – The dollar fell and major rivals gained on Monday as risk appetite returned to currency markets and investors weighed up the possible impact of an expected U.S. rate hike this week.

Currency markets were choppy. The safe-haven dollar had initially gained in early European trading hours, following a cautious Asian session in which investors were worried about the global growth outlook. But the dollar started dropping around 0800 GMT while European stock indexes, which had opened in the red, gradually strengthened.

The U.S. Federal Reserve has signalled a 75 basis-point rate hike at its July 26-27 meeting, although data last week showing inflation hit 9.1% year-on-year in June raised the possibility of a larger 100 bps hike later this year.

Meanwhile, investors are paying close attention to company earnings. One sixth of Europe’s STOXX 600 will report second-quarter results this week, with earnings expected to have grown 22% year-on-year, according to Refinitiv I/B/E/S forecasts.

At 1036 GMT, the U.S. dollar was down 0.2% at 106.49, while the euro was up 0.1% at $1.02195.

Neil Jones, head of FX at Mizuho, said the boost to the euro may have come from traders covering their euro short positions following the European Central Bank’s decision last week to raise rates for the first time since 2011.


The euro was boosted to a two-week high last week following the rate hike, but it then fell after disappointing business activity data from France and Germany.

ING’s FX analysts said the euro’s moves suggest that expectations around the European Central Bank’s policy plans will be driven more by market data in future, highlighting euro zone inflation data due on Thursday and Friday.

“We think 1.0200 could prove to be an anchor for EUR/USD for the remainder of the summer, but re-testing parity is a tangible risk in the current high-volatility environment,” ING said.

High energy prices and looming gas shortages have left Germany on the cusp of recession, according to the Ifo institute, whose business sentiment survey showed Germany business morale fell by more than expected in July.

A survey on Sunday showed that 16% of industrial companies in Germany were cutting production in reaction to soaring energy prices.

Top Western energy companies are expected to see record-breaking profits for the second quarter running.

U.S. economic growth is slowing and inflation is “way too high”, U.S. Treasury Secretary Janet Yellen said on Sunday.

“Recession fears should continue to prevent a solid recovery in risk sentiment, which should incidentally give some extra support to safe-havens (including USD) and may keep the path uneven for high-beta commodity currencies,” wrote ING FX analysts in a note to clients.

The Australian dollar was up 0.3% at $0.6948 while the New Zealand dollar was up 0.2% at $0.6267.

Versus the Japanese yen, the dollar was up 0.2% at 136.375.

The British pound was up 0.2% against the dollar at $1.2035 , while euro-sterling was steady at 84.955 pence per euro.

British Foreign Secretary Liz Truss and former finance minister Rishi Sunak set out plans over the weekend in their campaigns to be Britain’s next prime minister.

(Reporting by Elizabeth Howcroft; Editing by Catherine Evans and Ed Osmond)

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post