Traders today practically rule out the possibility of a cut at the next Fed monetary policy meeting in March, in contrast to a probability of 65.9% a month ago.
He dollar in the world is this Friday on its way to its fourth consecutive week of gainsexercising pressure on the yen and taking it to 10-month lows. Traders are adjusting their bets around the speed with which the Bank of Japan could raise interest rates and uncertainty over when the Federal Reserve will cut them.
The governor of the Bank of Japan, Kazuo Uedaexpressed today that there is a good chance that favorable monetary conditions will persist even after the central bank ends its negative interest rate policy, what is expected to happen next month. His dovish comments add to those of his deputy, Shinichi Uchida, who a day earlier said it was difficult to imagine a rapid rate increase.
In contrast, several Federal Reserve officials maintain that there is no urgent need to cut interest rates, thus giving an additional boost to the dollar. The yen barely changes, trading at 149.42 units per dollar, its lowest level since last November, with a depreciation of 0.68% for the week.
Dollar vs. other currencies
The dollar index shows a slight increase today to 104.19, after gaining 0.1% on Thursday, supported by data indicating the strength of the US labor market, dispelling expectations of an imminent rate cut by the Fed. In the weekthe dollar index is up 0.2%, boosted by strong monthly employment data and the decisive tone of the Chairman of the Federal Reserve, Jerome Powell, in a recent interview.
Traders today practically rule out the possibility of a cut at the next Fed monetary policy meeting in March, in contrast to a 65.9% probability a month ago, according to CME Group’s FedWatch tool.
As for other currencies, the euro barely changes at $1.0773, while the pound sterling remains around $1.2619. Both currencies show resistance, and the leaders of the European Central Bank and the Bank of England They express their opposition to market bets on an early rate reduction.
In the cryptocurrency space, bitcoin is experiencing an increase of 3%, reaching $46,688 and heading towards a weekly increase of 9.3%, its best result in two months.
Source: Ambito
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