The U.S. currency fell against the yen and other currencies as new economic signals were awaited.
He global dollar fell 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 fell 0.5% to 102.56, and the euro rose 0.61% to $1.0999, while the greenback fell 0.35% against the yen to $146.71.
Meanwhile, the pound sterling rose 0.81% to $1.2869 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.
Investors await US economic data
The index report consumer prices, which will be closely watched on Wednesday, will also help guide the Fed’s interest rate policy. Fed.
“Today’s CPI release has been seen as promising news for the markets,” he said. Helen Given, associate director of operations at Monex USA. “Traders are treating this as a sort of prelude to tomorrow’s CPI, which markets have been looking at as a potential volatility event after last month’s reading showed prices actually fell,” he said.
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.
“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 exaggerated,” Sharma said of the yen’s value.
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.
Source: Ambito
