Night races have left the euro and pound in early Asia, fueled by good job data in the UK and an overall improvement in investor sentiment towards solid US retail sales and hopes of easing blockages in China.

The European common currency reached $ 1.0563 at the start of trading in Asia after rising 1.1% overnight, making it the biggest day of percentage growth since March.

Sterling reached $ 1.2501 after a nightly rally of 1.4%, its best day since late 2020, also helped by data showing that Britain’s unemployment rate has reached a 48-year low.

These achievements pushed the dollar index, which measures the dollar against six counterparts, to 103.18 in early Asia, which is the lowest figure in almost two weeks.

“The pound rose as a result of a very strong job report yesterday, and in addition there has been a slight improvement in broader risk sentiment in financial markets due to some positive news from China about the blockade and strong data from the US,” said Carol Kong. , currency strategist of the Commonwealth Bank of Australia.

Shanghai on Tuesday reached its long-awaited milestone in three consecutive days without new cases of COVID-19 outside quarantine zones, setting out the most accurate timetable for exiting the blockade the day before.

Retail sales in the U.S. rose sharply in April as consumers bought more vehicles amid improved supply and increased restaurant costs.

In addition to reflecting an improvement in risk-taking, stocks jumped overnight, and U.S. Treasury bond yields rose and were last at 2.9878%.

On Tuesday, Federal Reserve Chairman Jerome Powell told the Wall Street Journal on Tuesday that the Fed would “continue to push” for tougher U.S. monetary policy until it becomes clear that inflation is slowing.

While the dollar briefly cut its losses after Powell’s remarks, it then resumed its decline.

High yields have helped put an end to the slight recovery of the yen recently, as the Japanese currency is very sensitive to higher rates in the United States.

The last time the yen was at 129.28 per dollar, little has changed over the day.

The Australian dollar was in first place, thanks to improved risk sentiment, and traded at $ 0.7035, up 0.8% on Tuesday.

The Australian was also helped by the minutes of a central bank meeting released on Tuesday, which hinted that the Reserve Bank of Australia would raise interest rates again in June.

Cryptocurrency markets were fairly quiet. Bitcoin has hardly changed at around $ 30,400.

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