The financial market experienced a notable change on Thursday, with the yen and euro enjoying relief very necessary, while the dollar and the returns ofs treasury bonds American remained stable.
This comes after US private payroll data was revealed that resulted be weaker than anticipated, leading investors to reduce their bets on a possible rate hike by the Federal Reserve this year.
After hitting an 11-month high earlier in the week, the dollar index, which evaluates the performance of the dollar relative to a basket of six currencies including the euro and the yen, recorded a slight decrease of 0.07%, standing at 106.68. This came after data on Wednesday indicated that private payrolls in the United States had increased much less than expected during September.
Although analysts noted that More data would be needed to assess the speed with which the labor market is slowing, Money markets reduced their expectations of a rate increase by the Federal Reserve in November, and now they see an almost 80% chance that the central bank will keep rates stable. This marked a significant change from Tuesday, when the probability of an increase was 28.2%, according to CME Group data.
Dollar, Treasury bond rates and other currencies
The returns of the Long-term US Treasuries fell from 16-year highs, while the yen, which usually reacts to US yields, rose 0.13%, standing at 148.92 units per dollar. Although on Tuesday it had reached 150,165 units per dollarits lowest level since October 2022.
As for the euro, it rose 0.13%, reaching $1.0518, after falling to its lowest level of the previous year, $1.0448, on Tuesday. The single currency has suffered a depreciation of more than 14% against the dollar in the last three months.
On the other handoil prices continued their downward trend on Thursdayadding to the significant losses recorded on Wednesday, due to persistent uncertainties regarding the demand outlook.
According to a poll conducted by Reuters, Strategists predict a weakening of the dollar in the near future. Meanwhile, the British pound managed to stabilize against the dollar at $1.2137, having hit its lowest level since March during the previous session.
Bank of England Deputy Governor Ben Broadbent expressed uncertainty over whether interest rates will continue to rise, reflecting the caution present in global financial markets.
Source: Ambito
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