He global dollar The U.S. dollar held near its lowest level in nearly a month against its major peers on Tuesday, still hurt by Friday’s unexpected jobs report as traders await testimony from the president of the U.S. Senate. United States Federal Reserve, Jerome Powelllooking for clues about the path of interest rates.
The index slumped 0.9% last week, fueled by Friday’s monthly payrolls report, which fueled bets the Federal Reserve would soon begin cutting rates.
According to CME Group’s FedWatch tool, the probability of a rate cut at the September meeting is 76%, up from 66% a week ago. Another cut is expected in December.
Powell will testify for two days before the United States Congressstarting on Tuesday with the Senate and continuing on Wednesday with the House of Representatives.
Consumer price data on Thursday could also be crucial, market watchers said, with recent figures showing a cooling from unexpectedly high levels at the start of the year.
“All ears will be on how Powell communicates the risks between stubborn inflation and an unnecessary deterioration in the labour market,” said Ray Attrill, head of currency strategy at National Australia Bank, who expects the US dollar to decline over the long term.
Meanwhile, markets have taken a “rather optimistic” view of the French poll results, Attrill added, “viewing political stalemate – and with it a high degree of fiscal policy inertia – as the most likely path forward for France, a more benign scenario than any of the alternatives.”
The dollar in Uruguay opened its week on the decline
The dollar fell 0.18% on Monday compared to Friday, closing at 40.061 pesos, according to the official exchange rate. Central Bank of Uruguay (BCU)opening the week in negative territory, but continuing its operations mostly within the 40 pesos range.
The US currency has accumulated a variation of 0.18% on a monthly basis and 2.66% on an annual basis, after its interbank rate was 1.04 pesos higher than that registered after the close of the last exchange day of last year.
Among the factors that explain the permanence of the greenback above 40 pesos, are the weakness of the Brazilian real and of the Argentine pesotwo regional references that dragged the Uruguayan peso down with them.
Source: Ambito
