The U.S. dollar made gains this morning as markets anticipate that central banks around the world will ease monetary policy. The anticipation comes in the wake of the Federal Reserve’s decision last week to maintain its current rate level.
The dollar rose on Wednesday as some calm returned to currency markets with Wall Street stock futures pointing to a firm start and European shares recouping some of their losses, all of which lessened the need to buy safe-haven currencies like the yen.
The ECB has restricted purchases of assets to covered bonds, though sovereign bonds and asset-backed securities are now on its shopping list. ECB officials accelerated covered-bond buying last week, with the total settled rising by more than 3 billion euros ($3.74 billion)
Global stocks rose for the first time in five days, commodities gained and Treasuries slid as U.S. reports showed consumer confidence reached the highest level since 2008 and home values jumped the most in seven years.