The United States employment data was positive, and the currency rose both globally and locally, where it remains above $39.
He dollar in Uruguay managed to close its first positive week after five weekly balances in negative territory. For now, December accumulates a green balance, although marked by ups and downs in the quote.
He dollar It closed the last exchange day of the week with a rise of 0.46%, and thus reached a value that it had not achieved since last November 20. Thus, and according to the official quote of the Central Bank of Uruguay (BCU)the US currency ended in the 39,308 pesos.
This is the second consecutive day on the rise after having been on the verge of falling into the range of 38 pesos. But, in addition, with the rise the currency was able to affirm a positive balance from “end to end” in the week, breaking a streak of five consecutive falls.
In the week, the dollar went up 0.86%, while December accumulates a positive balance of 0.48%. Meanwhile, so far in 2023, and as the end of the year approaches, falls 1.90%still far from market expectations.
Global dollar rises after US employment data
Meanwhile, the markets received the employment data in USA, also expected by Booking Federal (Fed) to finish defining the course of monetary policy for the beginning of 2024.
Given the drop in unemployment and the reinforcement of the idea that the labor market is strengthening, the dollar index won a 0.3% and closed at 104 units.
“So far, there’s nothing in the data to shake (the Fed) out of its ‘let’s see what happens’ stance. The market was clearly leaning in the other direction,” he said. Steven Englander Head of Global G10 Currency Research at Standard Chartered Bank in NY. Investors understand, meanwhile, that a rate cut during the first quarter of next year may still be premature.
In that sense, the short-term rate futures traders They reduced bets that the Fed would start cutting rates in March after the report, and now see the move as more likely. start of sales in May. Markets saw a 60% chance of a reduction in March, but after the report they dropped to just under 50%.
“In the short term, the US rates market has become, in my opinion, too pessimistic regarding the Fed”, considered Stbephen They watch, of Amberwave Partners. “The massive easing of financial conditions since early November basically means the Fed doesn’t need to cut to add fuel to the fire,” he added.
Source: Ambito
