The U.S. dollar edged up on Tuesday after a survey of loans showed that the credit situation in the U.S. was not as bad as feared, while the British pound neared a one-year high on hopes that the Bank of England will hike interest rates this week.
In Asia, trade figures released on Tuesday revealed that China’s imports fell 7.9% in April from a year ago, while exports rose at a slower pace of 8.5% in the same period after a surprise jump of 14.8% in March.
The yuan did not react much. The offshore yuan
USDCNH traded 0.1% lower at 6.9287 per U.S. dollar.
On Monday, the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS) indicated that while credit conditions for U.S. businesses and households kept tightening at the beginning of the year, it was likely due to the effect of the Fed’s aggressive rate increases rather than severe stress in the banking sector.
The survey released on Monday was one of the first measures of sentiment across the banking industry since the recent wave of bank failures, triggered by Silicon Valley Bank’s collapse in March.
The U.S. dollar gained from Treasury yields after the survey, as traders reduced their expectations on how much Fed rate cuts would be needed later this year to ease the pressure on the sector. (FEDWATCH)
The euro
EURUSD was last 0.13% lower at $1.0990, while the Japanese yen
USDJPY gained about 0.05% to 135.04 per dollar, slightly helped by remarks from Bank of Japan (BOJ) Governor Kazuo Ueda.
Ueda said on Tuesday the BOJ will end its yield curve control policy and then start shrinking its balance sheet, once prospects improve for inflation to consistently hit its 2% target.
Two-year U.S. Treasury yields (US2YT=RR) were just below 4%, having risen above that level for the first time in about a week on Monday.
The benchmark 10-year yield US10Y was last at 3.4995%, after rising more than five basis points in the previous session.
The dollar nudged up on Tuesday after a report on loans showed that the U.S. credit outlook was better than anticipated, while the pound approached a one-year high on hopes that the Bank of England will lift interest rates this week.
In Asia, trade numbers released on Tuesday showed that China’s imports declined 7.9% in April from a year earlier, while exports grew at a slower rate of 8.5% in the same period after an unexpected rise of 14.8% in March.
The yuan barely moved. The offshore yuan
USDCNH was 0.1% lower at 6.9287 per U.S. dollar.
On Monday, the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey (SLOOS) suggested that while credit conditions for U.S. firms and households continued to tighten at the start of the year, it was likely due to the impact of the Fed’s sharp rate hikes rather than severe strain in the banking sector.
The survey released on Monday was one of the first measures of sentiment across the banking sector since the recent spate of bank failures, caused by Silicon Valley Bank’s collapse in March.
The U.S. dollar rose with Treasury yields after the survey, as traders scaled back their expectations on how much Fed rate cuts would be required later this year to ease the stress on the sector. (FEDWATCH)
The euro
EURUSD was last 0.13% lower at $1.0990, while the Japanese yen
USDJPY increased about 0.05% to 135.04 per dollar, slightly supported by comments from Bank of Japan (BOJ) Governor Kazuo Ueda.
Ueda said on Tuesday the BOJ will end its yield curve control policy and then start shrinking its balance sheet, once prospects get better for inflation to steadily hit its 2% target.
Two-year U.S. Treasury yields (US2YT=RR) were just below 4%, having risen above that level for the first time in about a week on Monday.
The benchmark 10-year yield US10Y was last at 3.4995%, after rising more than five basis points in the previous session.