SYDNEY, Nov 19 ― The dollar was set to post a second week of chunky gains against the euro today as traders wager on interest rates rising faster and further on the North Atlantic's western shore, while sterling and the kiwi also firmed with rate hike bets.
“Previous post-GFC occasions when the euro traded below US$1.10 were accompanied by a big euro short position,” said Societe Generale strategist Kit Juckes. Friday moves were slight and the focus will be on central bank speakers, with European Central Bank President Christine Lagarde at 0830 GMT, Bank of England economist Huw Pill at 1200 GMT and Federal Reserve officials Christopher Waller and Richard Clarida at 1545 GMT and 1715 GMT the highlights.
“Euro/dollar shorts are big enough now that a Brainard win will hurt,” Donnelly said. “I would think you could see 100 pip euro/dollar rally on Brainard over one or two days.”In emerging markets, crisis in Turkey has driven the lira to a record low, while bitcoin is below US$60,000 and eyeing its worst week in six months with cryptocurrency sentiment fragile.
Sterling has been the stellar performer besides the dollar among G10 currencies and has gained about 0.5 per cent to US$1.3487 as a surge in inflation to a 10-year high has firmed bets on the Bank of England hiking rates in a month.