Dollar takes a break from this week’s slide ahead of BoE, ECB meetings

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SINGAPORE — The dollar found a footing in

Asia on Thursday, pausing the week’s slide as a slump in tech

and social media stocks soured appetite for riskier currencies,

and as traders awaited central bank meetings in Britain and

Europe.

The risk-sensitive Australian and New Zealand dollars fell

slightly in morning trade. Sterling and the euro did

not extend recent gains, and the common currency was marginally

weaker at $1.1297. The yen held at 114.41 per dollar.

Shares in Facebook owner Meta plunged more than 20%

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after the bell as earnings and the outlook fell short of

expectations.

Shares in Twitter and Spotify also fell

and Nasdaq 100 futures dropped 2%, dragging on demand for

currencies like the Andipodeans, said Westpac analyst Imre

Speizer in Christchurch.

The Aussie was last down 0.2% at $0.7120, shy of

resistance at $0.7180. The kiwi was 0.1% lower at

$0.6625.

Trade in Asia was lightened by a holiday in China.

Policy decisions from the Bank of England (BoE) and European

Central Bank (ECB) are due at 1200 GMT and 1245 GMT

respectively, and a news conference with ECB President Christine

Lagarde is scheduled at 1330 GMT.

“Hawkish outcomes might pressure the U.S. dollar,” said

Speizer. The dollar index has dropped back to its 50-day

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moving average and was steady on Thursday at 96.043.

Markets have fully priced a 25 basis point hike from the

BoE, so the focus will likely fall on the outlook.

While the ECB is not expected to offer up policy changes,

hot consumer prices and recent strong labor data has raised

expectations for a shift in tone, especially around inflation.

“The odds have clearly risen that the bank opens the door to

normalizing policy and Christine Lagarde potentially tells us

that she cannot rule out a hike this year,” said Chris Weston,

head of research at brokerage Pepperstone in Melbourne.

“This would move the bank closer to market pricing and

justify a long euro position.”

Sterling hovered at $1.3560 and 83.29 pence per

euro. Euro/sterling volatility gauges stood at their

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highest for the year ahead of the meetings.

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Currency bid prices at 0211 GMT

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar $1.1302 $1.1304 -0.01% -0.58% +1.1306 +1.1294

Dollar/Yen 114.3500 114.4300 +0.01% -0.50% +114.4650 +114.3500

Euro/Yen

Dollar/Swiss 0.9191 0.9190 +0.05% +0.80% +0.9198 +0.9195

Sterling/Dollar 1.3560 1.3571 -0.04% +0.30% +1.3575 +1.3558

Dollar/Canadian 1.2681 1.2668 +0.12% +0.31% +1.2687 +1.2672

Aussie/Dollar 0.7121 0.7135 -0.18% -2.02% +0.7134 +0.7116

NZ 0.6625 0.6634 -0.11% -3.19% +0.6632 +0.6610

Dollar/Dollar

All spots

Tokyo spots

Europe spots

Volatilities

Tokyo Forex market info from BOJ

(Reporting by Tom Westbrook; Editing by Edwina Gibbs)