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The global dollar and oil operate stable with the market’s attention focused on US inflation

The global dollar and oil operate stable with the market’s attention focused on US inflation

He global dollar and future prices of Petroleum were operating stable this Monday with the market’s attention focused on the data from inflation in USA that will be known this week and that, finally, could retrace the path that the Federal Reserve with their interest rates.

He dollar indexwhich measures the performance of the US currency against a basket of six other currencies, was little changed at 105.28, after its first rise in three weeks.

He euro rose less than 0.1% to $1.0780, while the pound rose 0.1% to $1.2537 ahead of Tuesday’s labor market data.

In Asiahe dollar was trading at 155.89 yen, after hitting its highest since May 2 at 155.965 yen, while the offshore chinese yuan fell 0.1% to 7.2413 units per dollar and onshore yuan fell to its lowest level since April 30 at 7.2385 units per dollar, as traders waited for the United States to announce new tariffs on China.

Oil, unchanged after falling on Friday

The prices of Petroleum were little changed on Monday, after losing about $1 a barrel in the previous session, amid signs that U.S. policymakers are likely to keep interest rates high for longer.

The futures of Brent crude oil They were up 21 cents at $83 a barrel at 1036 GMT. US crude oil futures West Texas Intermediate (WTI) rose 27 cents to $78.53.

Meanwhile, Chinese data over the weekend showed that consumer prices rose in April for the third consecutive month, while producer prices continued their decline, indicating improved domestic demand.

The expectations that the Organization of Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, extend supply cuts into the second half of the year help support prices.

The market only has eyes for the Fed

Recent weaker-than-expected US labor market data and a Federal Reserve which ruled out further increases in interest rates, caused traders to value further easing by the Fed this year.

Markets are pricing in around an 80% chance of a rate cut by the September meeting of the Fedwith around 40 basis points (bps) of total reductions expected in 2024, LSEG data showed.

Comments from officials of the Federal Reserve last week varied as rate setters debated whether interest rates were high enough. A leap in expectations inflation of consumers, revealed in a survey on Friday, could further complicate the conversation.

With recent data indicating an economy slowing slightly from the robust growth seen in 2023, investors are looking to confirm the extent to which inflation is persistent.

Source: Ambito

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