Market attention is focused on the US inflation report due out on Wednesday.
He global dollar recovered some of last week’s losses on Monday, as investors eagerly awaited data from inflation of USAafter Friday’s mixed payrolls report sparked uncertainty about the magnitude of any rate cut the Fed announced. Federal Reserve (Fed) next week.
He dollar indexwhich measures the U.S. currency against a basket of competitive currencies, rose 0.37 percent to 101.56.
He yen The dollar weakened against the dollar after four days of gains and was down 0.7 percent at 143.35 yen per dollar, after hitting a one-month high of 141.75 yen on Friday. While the yuan fell 0.4% to 7.1215 per dollar.
While the euro fell 0.3% to $1.1048, ahead of Thursday’s meeting of the European Central Bank (ECB)The ECB is expected to cut rates by 25 basis points to 3.50%, after starting its rate-cutting cycle in June with a quarter-point cut.
In the UK, the pound fell 0.3% to a more than two-week low of $1.3083.
All eyes are on US inflation data
Market attention is focused on the US inflation report to be published on Wednesday, which could alter estimates ahead of the meeting on Tuesday 17 and Wednesday 18 of the FedReuters reported.
Friday’s long-awaited US employment data did not clarify for traders the question of whether the Federal Reserve would implement a rate cut of 25 basis points or a larger one of 50 basis points at its monetary policy meeting.
Although employment rose less than expected in August, the rate of unemployment declined and wage growth remained solid, indicating that the labor market The US economy is cooling, but not at a pace that justifies panic about the economy’s growth prospects.
Markets are pricing in a 25 basis point rate cut next week and a 25 percent chance of a larger half-point cut. On Friday, bets on a major cut reached 50 percent.
Fed policymakers signaled they are prepared to begin a series of rate cuts, as they see a cooling in the labor market which could accelerate into something more serious if there is no change in policy.
Source: Ambito
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