The dollar, on Friday, December 9, gained 0.57 percent to 101.68 against a basket of six major currencies. Against the Japanese yen.
The greenback appreciated as high as 115.36 yen, its highest level since Feb. 9, and was last up 1.16 percent at 115.30 yen. Also likely to keep GBP/USD strength in check is the bullish USD side of the equation.
The Institute of International Finance (IIF) estimates that over $2trn of assets have switched from bonds to equities since Trump’s election. In addition the very high cash stock-piles of the buy-side are now being put to work.
Meanwhile, the Pound to Dollar exchange rate is at 1.2613 so any near-term spikes would offer an opportunity if Turner’s view were to be actioned.
The euro dropped on Friday for a second consecutive day in a continued reaction to the European Central Bank’s extending its bond-buying program longer than many had anticipated, even as the bank cut the size of the monthly purchases.
The ECB said on Thursday it would reduce its monthly asset buys to 60 billion euros starting in April from 80 billion euros currently and extend purchases to December 2017 from March 2017. It reserved the right to increase the size of purchases again.
