The dollar hits two-month lows this Tuesday, April 4, in volatile operations, after another round of weak economic data that bolstered bets that the Federal Reserve is about to finish its cycle of monetary tightening, even as other central banks continue to raise rates to break the persistent high inflation.
The pound sterling hit a new 10-month high against the dollar, while the euro traded at its highest level since February.
Data that showed that the Job offers in the United States in February fell to the lowest level in almost two yearsas well as the continued decline in factory orders, sank the dollar, as data indicated that rate hikes may be coming to an end.
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Vacancies, a measure of the labor demand, decreased by 632,000 to 9.9 million on the last day of February, the lowest level since May 2021, according to the monthly report on job openings and job turnover (JOLTS). US factory orders fell 0.7% in February after falling 2.1% in January following a 1.7% jump in December.
He dollar index fell to a two-month low of 101.51, for then trade a 0.5% retracement to 101.53.
“We have a lot of data to chew on this week, which will show if the US economy is resilient enough to withstand the Fed’s current rate hike mentality, or if markets will take a breather,” he said. John Perez, director of operations of Monex USA in Washington.
“If we add poor data to a banking crisismore him rising costs of oil supply, chances for rate cuts next year may be more favourable,” he added.
The British pound rises to 1.2520 dollars, its highest level since June 2022, after breaking through a major resistance level. The pound was then trading 0.8% higher at $1.2508.
The euro reached 1.0964 dollars, its maximum in two months. It then gained 0.5% to $1.0956. However, traders continue to think that the European Central Bank has more rate hikes ahead.
The dollar, meanwhile, lost 0.6% against the and in to 131.74 yen.
Source: Ambito
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