© Reuters. FILE PHOTO: An illustration shows U.S. $100 banknotes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao
By Hannah Lang and Joice Alves
WASHINGTON/LONDON (Reuters) – The euro and pound rose against the safe-haven U.S. dollar on Monday, buoyed by risky sentiment in markets, with European stocks rising on lingering hopes that China will ease COVID restrictions. .
A survey showed on Monday that investor sentiment in the euro zone improved in November, the first time it rose in three months, reflecting hopes that recent warming temperatures and falling oil prices energy will prevent gas rationing on the continent this winter.
Investors were also encouraged by a Monday reading showing German industrial production rose in September, beating analysts’ expectations. Industrial production rose 0.6% from the previous month, the Federal Statistical Office said.
The euro last rose 0.26% to $0.9986, its highest level since October 27, while the pound last traded at $1.1451, up 0.67% over the day.
“The data hasn’t been so terrible in the form of German industrial production, as well as the eurozone [consumer price index] that we had last week and the [gross domestic product] figures” which showed the euro zone grew at a rate of 0.2% in the third quarter, said Kathy Lien, managing director of BK Asset Management.
The pan-European index rose 0.23%, with traders pointing out that investors are still betting China will ease its coronavirus measures, despite officials saying they plan to maintain the zero-COVID policy, which includes lockdowns, quarantines and rigorous testing.
“The risk to sentiment was evident at the end of last week as speculators rushed over reports that China might revise its zero COVID policy,” said Jane Foley, head of FX strategy at Rabobank in London. .
Against a basket of currencies, the fell 0.549% to 110.460. It had lost almost 2% at the end of last week after reports that China would make substantial changes to its COVID-19 policy in the coming months.
“With the lighter calendar this week, with the market … not fully pricing in further tightening from the Fed, I think you’re just seeing some profit taking early in the week,” said Link.
Investors were also pricing Friday’s U.S. jobs report, which showed companies added more than 261,000 jobs in October and hourly wages continued to rise, evidence of a still-tight labor market. .
But hints of some easing in market conditions, with the jobless rate hitting 3.7%, have fueled hopes that the much-wanted Federal Reserve pivot could loom on the horizon, capping potential gains. for the dollar.
On Friday, four Fed policymakers also indicated they would still consider a lower interest rate hike at their next policy meeting.
In China, the economic impact of the country’s zero COVID policy was again highlighted in its trade figures released on Monday, which showed exports and imports contracted unexpectedly in October, the first simultaneous recession. since May 2020.
Currency rates at 9:55 a.m. (2:55 p.m. GMT)
Description RIC Last US Close Pct Change YTD Pct Highest Bid Lowest Bid
Dollar index 110.4600 111.0900 -0.55% 15.468% +111.2800 +110.2500
Euro/Dollar $0.9988 $0.9960 +0.29% -12.14% +$1.0007 +$0.9898
Dollar/Yen 146.4200 146.6700 -0.15% +27.22% +147.5600 +146.0950
Euro/Yen 146.23 145.99 +0.16% +12.21% +146.7900 +145.6800
Dollar/Swiss 0.9906 0.9942 -0.33% +8.63% +0.9981 +0.9877
Pound sterling/dollar $1.1452 $1.1372 +0.65% -15.37% +$1.1484 +$1.1291
Dollar/Canadian 1.3521 1.3481 +0.30% +6.94% +1.3552 +1.3465
Aussie/Dollar $0.6464 $0.6470 -0.09% -11.07% +$0.6490 +$0.6401
Euro/Switzerland 0.9892 0.9897 -0.05% -4.60% +0.9919 +0.9865
Euro/pound sterling 0.8721 0.8756 -0.40% +3.82% +0.8790 +0.8703
New Zealand $0.5920 $0.5930 -0.18% -13.51% +$0.5945 +$0.5866
Dollar/Norway 10.2890 10.2350 +0.52% +16.78% +10.3245 +10.2200
Euro/Norway 10.2781 10.2014 +0.75% +2.65% +10.2853 +10.1872
Dollar/Sweden 10.8667 10.8952 +0.13% +20.50% +10.9699 +10.8108
Euro/Sweden 10.8554 10.8416 +0.13% +6.07% +10.8746 +10.8020
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