4.7 C
Wednesday, February 1, 2023

Super dollar falls near 7-month lows after new key data for investors

Must read

- Advertisement -

On Friday, two separate reports showed an economy growing and creating jobs, but with global activity approaching recession, prompting traders to sell dollars against various currencies.

The monthly employment report on Friday showed an increase in the number of workers on nonfarm payrolls and a slowdown in wage growth, good news for the US central bank.

- Advertisement -

Another report from the Institute for Supply and Management (ISM) showed service sector activity contracted in December for the first time in two and a half years. The ISM non-manufacturing PMI stood at 49.6, its weakest reading since 2009, excluding the crash during the 2020 pandemic.

The outlook for price pressures remains in the spotlight for investors, with consumer inflation data set to be released this week.

- Advertisement -

Federal Reserve Fed

The Federal Reserve raised interest rates by 50 basis points last month, following four consecutive 75 basis point hikes last year, but said it would probably keep them higher for longer to control inflation.

Fed funds futures now show that investors believe the most likely outcome of the February Fed meeting is a 25 basis point hike.

The dollar index, which measures the greenback’s performance against a basket of six currencies, was down 0.1% at 103.62, after falling 1.15% on Friday as investors shifted to assets. higher risk.

Sterling was up 0.55% at $1.2159, after rising 1.5% on Friday. The euro was up 0.28% at $1.0674, after a 1.17% rally on Friday. The Japanese yen was down 0.2% at 132.33 per dollar and the Chinese yuan was nearing its highest level in five months against the dollar.

Source: Ambito

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

Latest article