He global dollar traded stable this Tuesday, as investors were cautious ahead of the data from inflation of USA that will be known this Wednesday, while the performance of the US treasury bonds fell, amid fewer bets on future U.S. interest rate cuts. Federal Reserve (Fed).
He dollar closed last week lower, as traders digested disparate economic data, such as an unexpected slowdown in the expansion of US services and growth in the employment in the United States that exceeded expectations.
“You always have to be careful with these payroll numbers (in the United States) because they are very vulnerable to significant revisions over time,” said Guy Miller, from Zurich Insurance Group. “However, they show a still tight labor market,” he told Reuters.
He dollar indexwhich compares the greenback with a basket of six prominent currencies, remained stable at 104.12 units.
He dollar It also traded at 151.755 yen, while the Chinese currency remains close to the low of several decades, which kept traders alert for any signs of intervention, after the Ministry of Finance alert that he was analyzing that option days ago.
Meanwhile, the euro fell 0.1% to $1.0852, and the pound sterling rose 0.1% to $1.2666.
The market expectation
This Wednesday, the inflation March consumer price data in the United States will provide more clues about the path of the Fed’s monetary policy.
Before the report of CPI, the futures market interest rates has raised the odds of a rate cut in June to 58%, up from 52% on Monday, according to the tool FedWatch from CME.
“He dollar hasn’t really reacted much to rising Treasury yields,” he said. Eugene Epstein head of structured products for North America at moneycorp in New Jersey.
“One of two things could happen in the near term: Either the dollar strengthens to catch up with Treasury yields, or Treasury yields fall again. That discrepancy needs to narrow. And it’s just a matter of time before that gap narrows,” he added.
Source: Ambito
