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FOREX-Dollar dips on U.S. rate-cut bets, bitcoin on fire

Published 06/24/2019, 10:18 PM
Updated 06/24/2019, 10:20 PM
© Reuters.  FOREX-Dollar dips on U.S. rate-cut bets, bitcoin on fire

© Reuters. FOREX-Dollar dips on U.S. rate-cut bets, bitcoin on fire

* Investors await outcome on Trump-Xi meeting at G20 summit
* U.S.-Iran tension underpins safe-haven support for yen
* Dollar remains pressured by bets on multiple U.S. rate
cuts
* Bitcoin breaks $11,000 for first time since March 2018
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, June 24 (Reuters) - The dollar softened against a
basket of currencies on Monday on bets the Federal Reserve may
lower interest rates more than once this year, while tensions
between Iran and the United States provided safe-haven support
for the yen.
Bitcoin held firm after its torrid run over the weekend,
when it broke above $11,000 for the first time since March 2018.
The world's biggest and best-known cryptocurrency has risen
nearly 200% this year as Facebook's FB.O plan to introduce its
Libra digital coin stoked optimism about a widening usage of
virtual currencies. Investors awaited whether U.S. President Donald Trump and
China President Xi Jinping would at least call a truce on their
trade war at a summit in Japan later this week.
"The Trump-Xi meeting at the G20 this coming weekend and
heightened tensions in the Gulf, with the U.S. set to impose new
sanctions on Iran's crippled economy are keeping investors on
edge," said Marc Chandler, chief market strategist at
Bannockburn Global Forex LLC.
Both China and the United States should make compromises in
trade talks, Chinese Vice Commerce Minister Wang Shouwen said on
Monday. Markets believe that if Washington and Beijing fail to dial
back their heated rhetoric on trade, then the Fed will be forced
to cut interest rates to prevent a wider economic slowdown
resulting from higher U.S. tariffs on imports.
Interest rates futures implied traders priced in a 100%
chance the Fed would cut rates at the end of July, while they
are betting on a high probability it might lower rates two more
times after that, according to CME Group's FedWatch program.
Expectations of falling U.S. rates have weakened the
greenback. An index that tracks the dollar against a group of
six currencies .DXY fell 1.57% last week, its biggest weekly
loss in four months. At 9:38 a.m. (1338 GMT), the dollar index
dipped 0.1% at 96.126.
The latest weekly positioning data confirmed the view of a
weakening dollar.
Hedge funds have turned mildly bearish on the greenback, and
have increased bets on weakness in other currencies such as the
Australian dollar as their outlook on the global economy has
soured.

Meanwhile, the yen retreated from its strongest levels
against the dollar since January after President Trump called
off a military strike against Iran but tensions between the two
nations remain high. The yen JPY=EBS was down 0.18% at 107.495 per dollar after
reaching 107.045 on Friday as nervous traders piled into the
safe-haven currency.
Among digital currencies, bitcoin BTC=BTSP was steady at
$10,857.77 after breaking above $11,000 this past weekend on the
Luxembourg-based Bitstamp exchange.

========================================================
Currency bid prices at 10:08AM (1408 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1378 $1.1366 +0.11% -0.79% +1.1398 +1.1363
Dollar/Yen JPY= 107.5000 107.3000 +0.19% -2.50% +107.5300 +107.2600
Euro/Yen EURJPY= 122.34 121.98 +0.30% -3.07% +122.3900 +122.0000
Dollar/Swiss CHF= 0.9751 0.9762 -0.11% -0.64% +0.9782 +0.9744
Sterling/Dollar GBP= 1.2715 1.2740 -0.20% -0.33% +1.2766 +1.2709
Dollar/Canadian CAD= 1.3205 1.3221 -0.12% -3.17% +1.3221 +1.3178
Australian/Doll AUD= 0.6953 0.6923 +0.43% -1.39% +0.6961 +0.6929
ar
Euro/Swiss EURCHF= 1.1096 1.1099 -0.03% -1.40% +1.1130 +1.1095
Euro/Sterling EURGBP= 0.8949 0.8923 +0.29% -0.39% +0.8957 +0.8920
NZ NZD= 0.6604 0.6587 +0.26% -1.68% +0.6615 +0.6582
Dollar/Dollar
Dollar/Norway NOK= 8.5042 8.4950 +0.11% -1.56% +8.5106 +8.4703
Euro/Norway EURNOK= 9.6780 9.6627 +0.16% -2.30% +9.6860 +9.6493
Dollar/Sweden SEK= 9.3198 9.3509 -0.22% +3.97% +9.3548 +9.3000
Euro/Sweden EURSEK= 10.6074 10.6307 -0.22% +3.35% +10.6396 +10.5925


<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Bets on bold first rate-cut from the Fed https://tmsnrt.rs/2XTkkpn
GRAPHIC-Bets on bold first rate-cut from the Fed interactive
https://tmsnrt.rs/2Y3UHTf
GRAPHIC-CFTC currency market positionings https://tmsnrt.rs/2ZOx6GB
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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