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Dollar index hits new 1-year high

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HEADLINES

 

 

 

  • Dollar hits one-year high as U.S. yields rise, inflation data on tap
  • USD/CHF stretches to fresh highs above 0.9300
  • Oil steadies as energy crunch stirs up volatility, recovery concerns
  • Gold prices gain as inflation concerns grow
  • Major indexes in China and Korea fall at least 1% as oil prices continue rising
  • European stocks hit by risk aversion ahead of earnings
  • Billionaire Bill Miller advocates for Bitcoin, but doubtful on altcoins
  • CHART: EUR/JPY

 

 

FOREX

 

 

Dollar hits one-year high as U.S. yields rise, inflation data on tap

 

The dollar hit a one-year high on Tuesday on expectations the U.S. Federal Reserve will announce a tapering of its massive bond-buying program next month, and as concerns over soaring energy prices also sent investors to the safe-haven greenback.

 

USD/CHF stretches to fresh highs above 0.9300

 

The US dollar is pushing higher [versus the Swiss franc] on the afternoon US trading session, exploring levels above 0.9300  for the first time over the last ten days. The pair has pierced the top of the recent trading range, inching up towards multi-month highs at 0.9380. The greenback was boosted by a rebound in US Treasury yields, with the 10-year note reaching 1.60% for the first time since June.

 

 

COMMODITIES

 

 

Oil steadies as energy crunch stirs up volatility, recovery concerns

 

Oil steadied after a volatile session on Tuesday, pausing a rally that has brought prices to multi-year highs and raised concerns that higher energy costs could derail the global economic recovery. Brent has risen for five consecutive weeks, while WTI has notched seven straight weeks of gains. Both contracts have risen by more than 15% since the start of September.

 

Gold prices gain as inflation concerns grow

 

Gold prices rose on Tuesday, as rising inflation fears dulled risk appetite and boosted demand for the safe-haven metal, although an advancing U.S. dollar limited bullion’s gains. A global energy crunch has threatened economic outlook and fanned inflation fears, driving some investors toward safer assets.

 

 

STOCKS

 

 

Major indexes in China and Korea fall at least 1% as oil prices continue rising

 

Shares in Asia-Pacific tumbled on Tuesday, with major indexes in China and South Korea falling at least 1%. The Hang Seng index in Hong Kong dropped 1.43% to close at 24,962.59. Shares of China Evergrande New Energy Vehicle, on the other hand, surged 4.56% after the firm vowed on Monday to start producing electric vehicles next year. The company is linked to debt-laden developer Evergrande, which has already missed multiple coupon payments for its bonds in recent weeks.

 

European stocks hit by risk aversion ahead of earnings

 

European shares lost ground on Tuesday as investors feared that soaring commodity prices would hamper a recovery in corporate profit, with fresh signs of troubles at property developer China Evergrande also denting sentiment. The pan-European STOXX 600 fell 0.9% by 0711 GMT after similar falls in Asian markets. The index is now about 5% away from its August peak.

 

 

CRYPTO

 

 

Billionaire Bill Miller advocates for Bitcoin, but doubtful on altcoins

 

Bill Miller, a seasoned Wall Street investor and founder of Miller Value Partners, advocated for the rise of Bitcoin (BTC) during a recent conversation with author William Green but voiced scepticism around many of the altcoins birthed during 2017. Miller subscribes to the well-documented thesis that Bitcoin portrays digital gold, and unlike many of his financial contemporaries — Warren Buffet being the most prominent — he has been a keen investor in the digital asset space.

 

 

CHART

 

 

Euro / Japanese yen – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/JPY has broken above a resistance zone around 130.5 as well as the 200 day moving average, possibly opening up a move up towards the May peak at 134. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/cryptocurrency-news/billionaire-bill-miller-advocates-for-bitcoin-but-doubtful-on-altcoins-2641480
https://www.fxstreet.com/news/usd-chf-stretches-to-fresh-highs-above-09300-202110121827
https://www.reuters.com/article/europe-stocks/european-stocks-hit-by-risk-aversion-ahead-of-earnings-idUSL4N2R81NA
https://www.investing.com/news/commodities-news/oil-falls-after-blistering-run-amid-global-energy-crisis-2640774
https://www.cnbc.com/2021/10/12/gold-markets-dollar-federal-reserve.html
https://www.cnbc.com/2021/10/12/asia-markets-currencies-oil.html
https://www.reuters.com/article/global-forex/forex-dollar-hits-one-year-high-as-u-s-yields-rise-inflation-data-on-tap-idUSL1N2R81A0

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