The US currency strengthened after a government report showed the number of Americans filing new claims for jobless benefits fell further last week.
The report also indicated that layoffs fell in August, despite the Fed’s sharp interest-rate hikes to quell inflation, which raised the risk of a recession.
Meanwhile, data from the Institute of Supply and Management (ISM) showed that manufacturing in the United States grew steadily in August, as employment and new orders recovered, while a further easing in price pressures strengthened expectations that inflation has probably peaked.
“There are no signs of a significant slowdown in these numbers,” said Shaun Osborne, chief currency strategist at Scotiabank, following the ISM data. “That may tip expectations toward a slightly more aggressive Fed,” he said.
Expectations of a third 75 basis point rate hike in the US at this month’s Fed meeting are rising on recent strong economic data and Fed funds futures now point to a 77.1 chance. %. All eyes will now be on the US Non-Farm Payrolls report for August due out on Friday.
The euro fell 0.99%, trading below parity against the dollar at $0.9959, while sterling hit a fresh two-and-a-half-year low of $1.1501. The Japanese yen fell to 140.23 yen per dollar, a low not seen since 1998. The dollar added 0.81% to 140.095 yen.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
