Attention will now turn to Wednesday’s comments from the Fed Chairman, Jerome Powell, looking for further signs of further tightening, plus key US jobs data for November to be released on Friday.
The US central bank is expected to raise rates in An additional 50 basis points when you meet on December 13 and 14.
“Markets have kind of stagnated in terms of what they expect. They know the Fed is going to raise rates, and that’s behind everything, but they’re not sure how much or when,” said Joseph Trevisani, a senior analyst at FXStreet.com.
The dollar index has fallen to 106.65 from a 20-year high of 114.78 on September 28.due to expectations that its recovery may have been exaggerated and because the Federal Reserve seeks to slow down its pace of rate hikes.
The dollar fell earlier on Monday despite other safe-haven currencies, the Japanese yen and Swiss franc, gaining on China concerns.
Hundreds of protesters and police clashed in Shanghai as protests over China’s strict COVID restrictions erupted for a third day and spread to several cities following a deadly fire in the far west of the country.
Shaun Osborne, chief currency strategist at Scotiabank in Toronto, said the dollar’s move could reflect a change in market expectations for the US currency, but said it was too early to be sure.
ANDThe greenback was down 0.22% at 138.87 Japanese yen. The euro lost 0.60% to $1.0339.
The risk-sensitive Australian dollar, which is strongly tied to Chinese growth, was the worst performing major currency, falling a 1.61% to 0.6648.
The currency was also hit by data showing Australian retail sales suffered their first slump of 2022 in October, as rising prices and higher interest rates finally seemed to have an impact on spending.
The offshore yuan weakened against the dollar, at 7.2273 units.
Bitcoin fell after major cryptocurrency bank BlockFi filed for US Chapter 11 bankruptcy protection along with eight subsidiaries, making him the latest victim in the cryptocurrency sector after the spectacular collapse of the FTX stock market earlier this month.
The cryptocurrency was down 1.30% at the time of writing this article to $16,211.
Source: Ambito
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