The dollar fell slightly on Monday following the comments from the Chairman of the Federal Reserve (Fed), Jerome Powellwhile cryptocurrencies rose on the perception that an assassination attempt against the former president donald trump has improved its chances of returning to White House.
Following the shooting, investors were adjusting the likelihood of a Trump victory. Online betting site PredictIt showed bets on a Trump election victory at 67 cents, up from 60 cents on Friday, with Joe Biden at 27 cents.
The dollar tends to strengthen as part of what is known as “operations Trump” – trading in assets that are likely to perform well under a Republican president who promotes a hardline trade policy and lax regulation for certain sectors.
Trump has presented himself as a strong supporter of cryptocurrency, although he has not offered concrete details about his proposal.
Cryptocurrency prices soared, with Bitcoin up more than 6% in the morning to $63,808, after hitting a three-week high of $63,838.86. Ethereum, meanwhile, rose more than 7% to $3,417.20.
He dollar The rate also briefly fell as Powell began his speech. He said the three readings of U.S. inflation during the second quarter “add some confidence” that the pace of price increases is returning to the Fed’s target on a sustainable basis, indicating a move to cut interest rates could be near.
“The market is feeling confident and was already confident before (Powell) talked about a rate cut in September, so I don’t think he’s really put it on the table, but it’s clearly on the table,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
The dollar index, which measures the greenback against a basket of currencies, fell 0.07% to 104.22 after rising as high as 104.31, and the euro fell 0.09% to $1.0897. The pound fell 0.22% to $1.2964.
It is believed that the Bank of Japan The central bank intervened in the market in another effort to shore up the Japanese currency last week following a cooler-than-expected U.S. inflation report. Data from the central bank suggest policymakers may have spent as much as 3.57 trillion yen ($22.4 billion) to do so on Thursday.
In front of Japanese YenThe dollar was unchanged at 157.89. The greenback fell to 157.15 during Powell’s intervention, its lowest level since June 17, before quickly recovering.
Focus on the Fed
Markets are now fully pricing in a rate cut of a quarter of a point by the Federal Reserve in September after data last week showed consumer prices fell on a monthly basis for the first time in four years in June.
“On the one hand, there is a greater likelihood that the Federal Reserve “There is a possibility of a cut in September and, on the other hand, a higher chance of a Trump presidency, suggesting that the interest rate cycle could be quite limited,” added Rabobank’s Foley. “There are these two opposing factors for the dollar in the near term.”
The dollar index, which measures the currency’s performance against six major peers, was up less than 0.1% at 104.10. The euro was little changed at $1.0910 after earlier hitting its highest since March at $1.0921, while sterling was down 0.1% at $1.2979.
The markets are in turmoil
The yields of the US bonds in the long term rose on expectations that a victory by Trump would involve policies that would increase public debt and fuel the inflation.
In USAS&P 500 and Nasdaq futures rose about half a percentage point. The world’s largest fund manager, BlackRock, The stock market began a busy week of earnings with a record $10.65 trillion in assets, sending its shares up 1.2% in pre-market trading.
On the other hand, cryptocurrency prices were advancing, with the Bitcoin rising to about 4% to 62,601. The Ether jumped almost 5% to $3,338.
Meanwhile, European stock markets fell after weak economic data from China helped set a cautious tone, while gloomy updates from British luxury group Burberry and watchmaker Swatch Group raised questions about consumer confidence.
Source: Ambito
