* Euro rebounds after ECB meeting had sent it lower
* Biden tax plan hammers cryptocurrencies
* Dollar nurses losses, all eyes on Fed meeting next week
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Tommy Wilkes
LONDON, April 23 (Reuters) - The euro rose on Friday, edging
back towards a seven-week high having nursed losses after
European Central Bank President Christine Lagarde squashed
speculation that policymakers will start to consider a tapering
of bond purchases.
Flash purchasing managers' index numbers for April came in
better than expected in the euro zone and supported the view
that the region's economic recovery is accelerating, although
the already-stronger euro was little moved by that data. The
United States numbers are due at 1345 GMT. The euro gained 0.3% to $1.2054 EUR=EBS while the dollar
index, measured against a basket of currencies, was down 0.3%
=USD .
The dollar is stuck in a narrow trading range near
multi-week lows on Friday, as markets look to the next moves by
major central banks ahead of a U.S. Federal Reserve meeting next
week.
"The ECB sounded much more prudent than the BoC (Bank of
Canada), as ECB President Christine Lagarde stressed that risks
are still tilted to the downside and that uncertainty remains in
place," UniCredit analysts said.
That probably offered investors the opportunity to take
profit on EUR-USD after a recent rally, they said.
While rising coronavirus vaccination rates and an improving
economic outlook are reasons to be optimistic, investors are
scaling back expectations for a withdrawal of monetary easing
after Lagarde said talk of phasing out emergency bond purchases
was premature, analysts said. Fed Chairman Jerome Powell is expected to repeat her message
next week, which would put downward pressure on Treasury yields
and cap the dollar's gains against most currencies.
"Powell has to reiterate the continuation of easy monetary
policy just like Lagarde," said Masafumi Yamamoto, chief
currency strategist at Mizuho Securities.
"As a result, the dollar is likely to fall against the yen,
but the larger trend for the dollar is still mixed. The dollar
can still rise against commodity currencies if commodity prices
start falling again."
The Australian AUD=D3 and New Zealand dollars NZD=D3
firmed on Friday, but traders said risks are pointed to the
downside due to the recent weakening in commodity prices.
The pound rose 0.4% to $1.3890 GBP=D3 .
Cryptocurrency ether ETH=BTSP tumbled more than 10% and
bigger rival bitcoin BTC=BTSP slid 7% amid speculation that a
plan by U.S. President Joe Biden to raise capital gains taxes
will curb investment in digital assets. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
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