U.S. Dollar Falls As Alibaba's Breakup Plan Lifts Sentiment
29 Marzo 2023 - 11:49AM
RTTF2
The U.S. dollar declined against its most major counterparts in
the European session on Wednesday, as Alibaba's plan to split into
six business units signalled an easing of Beijing's crackdown on
the tech sector.
Alibaba decided to break up the company into six smaller
entities and noted that most units will have the ability to raise
outside capital and potentially seek an IPO.
The restructuring plan eased concerns about China's crackdown on
private enterprises and triggered a rally in European stocks.
Worries about a banking crisis eased after top U.S. finance
officials promised to use all tools for any size institution, as
needed, to keep the financial system safe and sound.
The regulators defended decisions they made both before and
after the collapse of SVB, noting the bank failed because its
management failed to appropriately address clear interest rate
risks and clear liquidity risks.
The benchmark yield on the 10-year note fell to 3.56 percent.
Yields move inversely to bond prices.
The greenback touched 1.2361 against the pound, its lowest level
since February 2. Next key support for the currency is likely seen
around the 1.26 level.
The greenback was down against the franc, at 0.9164. On the
downside, 0.90 is possibly seen as its next support level.
The greenback weakened to a 6-day low of 1.0871 against the euro
and near a 4-week low of 1.3571 against the loonie, from its early
highs of 1.0817 and 1.3616, respectively. The greenback may find
support around 1.10 against the euro and 1.33 against the
loonie.
In contrast, the greenback advanced to 132.39 against the yen,
setting a 1-week high. The greenback is likely to find resistance
around the 137.00 level.
The greenback edged up to 0.6661 against the aussie and 0.6228
against the kiwi, off its early 6-day lows of 0.6713 and 0.6270,
respectively. The greenback is seen finding resistance around 0.64
against the aussie and 0.61 against the kiwi.
U.S. pending home sales for February are set for release in the
New York session.
Grafico Cross Euro vs US Dollar (FX:EURUSD)
Da Mar 2024 a Apr 2024
Grafico Cross Euro vs US Dollar (FX:EURUSD)
Da Apr 2023 a Apr 2024
