He global dollar The stock market was trading stable on Tuesday with the market recovering from last week’s scare and investors awaiting the data from inflation in USA which will be known tomorrow and will clear up the last questions about the future of the interest rate of the US Federal Reserve (Fed).
He dollar index remains unchanged at 103.13 as investors await figures from the US production market. euromeanwhile, is stable at $1.0929.
Kamal Sharma, G10 Senior Currency Strategist at Bank of Americatold Reuters that investors may not be as focused on U.S. consumer inflation data, which is expected to show a relatively mild 0.2% rise in prices in July, because concerns about the labor market now appear to be driving markets.
He yen fell for a second day as calmer trading conditions prevailed. dollar rose 0.1% against Japan’s currency to 147.34, its second straight rise, in a sign that markets appear to have overcome the worst of the recent turmoil.
“The general feeling is that there is still life in This carry trade“that perhaps the moves against the backdrop of deteriorating US data have been excessive and certainly fears of a US recession are overblown,” Sharma said.
A number of factors, in particular a surprise rate hike by the Bank of Japan (BoJ) and expectations of US rate cuts due to a slowing labour market have combined to reverse the stampede in the carry trade, leaving the yen up around 8% since mid-July.
Government sources told Reuters that the Parliament Japan plans to hold a special session on Friday to discuss the central bank’s decision last month to raise interest rates.
The pound sterling rose 0.18% to $1.2789 after data showed the interest rate unemployment of the United Kingdom fell to 4.2% in June from 4.4% in May, defying economists’ expectations for a slight increase. Job openings declined while wage growth slowed.
In other currencies, the Australian dollar rose 0.14% to $0.6595. The dollar rose 0.23% against the Swiss Francanother currency that has recently rallied as investors unwind carry trades.
He dollar The Uruguayan exchange rate rose 0.19% on Monday, closing at 40.285 pesos for the interbank exchange rate. Central Bank of Uruguay (BCU)), thus breaking four consecutive days of decline and once again strengthening in the 40 pesos range.
The US currency has accumulated a monthly variation of 0.03% and an annual variation of 3.24%, since its price is 1.26 pesos above the one registered after the closing of the last exchange day of last year.
Source: Ambito
