Strong U.S. economic data dampened traders’ expectations that the Fed’s first rate cut would be aggressive.
He global dollar The US dollar was holding steady in early Friday and was on track to close its first positive week in a month and a half, as traders awaited the latest inflation data. USA, that would allow us to fine-tune our aim as to how many points we will cut. Federal Reserve (Fed) of the reference interest rates in September. In Uruguay, Meanwhile, the currency could close August in positive territory.
He dollar The U.S. dollar held steady near a one-week high against its major peers after strong economic data prompted investors to reduce bets on aggressive U.S. interest rate cuts. Fed. In that line, the dollar index The dollar —which measures the performance of the greenback against a basket of six major currencies— remained at 101.37 units, after rising 0.36% on Thursday and touching its highest level since August 22, at 101.58 points.
This behavior was due to data from the United States showing that the Gross Domestic Product (GDP) grew at an annualized rate of 3.0% in the second quarter, an upward revision from the 2.8% rate reported last month.
In this way, the dollar is on track to gain 0.6% for the week, which would be its best “end to end” result since the beginning of April. However, a fall of around 2.6% is expected in August due to the cooling of inflation and the slowdown in the labour market.
Traders see a September rate cut as a done deal but after the data they had only a 34% chance of a 50 basis point cut, down from 38% the day before, according to the tool. FedWatch of the CME Group. They are, however, awaiting the release of the core personal consumption expenditures price index, the Fed’s preferred inflation gauge.
For its part, the yuan Chinese rose to its highest level since June 2023, while the euro little changed as inflation data confirmed the message from Thursday’s national readings that euro zone price pressures are easing rapidly.
In Uruguay, August is shaping up to be positive
In Uruguay, he dollar rose 0.24% compared to Wednesday, closing at 40.347 pesos in the interbank quote. Central Bank (BCU), fully recovering from its previous fall and heading to close August in positive territory and within the 40 pesos range.
The greenback has accumulated a monthly variation of 0.18% and an annual variation of 3.40%, since its price is 1.33 pesos above the one registered after the closing of the last exchange day of last year.
Source: Ambito
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