He super dollar rises slightly on Tuesday, close to its highest level in almost three months, while his Australian pair was losing steam after advancing earlier in the session.
A series of strong economic data from the United States and the president’s statements Federal Reserve, Jerome Powell, have curbed speculation about an early and steep cut in interest rates and supported the greenback.
According to CME’s FedWatch tool, traders currently rate the probability of a cut in March at just 16%, compared to 69% at the beginning of the year. They also forecast about 115 basis points (bp) of cuts this year, compared to the 150 bp forecast at the beginning of January.
The dollar index, which measures the U.S. currency against six other currencies, rose 0.1% to 104.58, after touching 104.60 on Monday, its highest level since November 14.
“It seems that the investors and companies have little incentive to unload their dollar holdings,” said Chris Turner, global head of markets at ING. “In addition, China marks the Lunar New Year next week, which may cause the market to reluctant to hold short dollar positions in an uncertain geopolitical environment,” he added. The euro was down 0.1% at 1.0732%.
Other data that the market looks at
German industrial orders rose unexpectedly in December, while euro zone consumers have cut their inflation expectations for the next 12 months.
“German data supports single currency“said Roberto Mialich, currency strategist at UniCredit.
Meanwhile, the Reserve Bank of Australia It kept rates unchanged on Tuesday but warned of possible additional monetary tightening.
He Australian dollar It gained 0.05% to 0.6492 units, moving away from the 2 1/2-month low of 0.6469 units hit on Monday. ANDl New Zealand dollar rose 0.13% to $0.6063.
Lee Hardman, currency analyst at MUFG, said the Australian central bank’s monetary path review “helps provide modest support to the Australian dollar in the near term.”
The pound sterling It was up 0.15% on the day at $1.2565, but held near Monday’s seven-week low.
He and inmeanwhile, appreciated during the day, standing at 148.71 per dollar, but not far from a two-month low of 148.90.
Source: Ambito
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