He global dollar weakened on Tuesday, before the data from inflation and the presidential debate in USAwhich could affect expectations about the prospects for interest rate cuts by the Federal Reserve (Fed).
He dollar indexThe U.S. dollar, which compares the greenback to a basket of six major currencies, was down 0.03 percent at 101.62, Reuters reported.
He euro was trading stable at $1.1034, after falling almost 0.5% on Monday. pound sterling rose 0.15% to $1.3094 after data showed solid job growth in United Kingdom.
He dollar was up 0.15 percent against its Japanese counterpart at 143.42 yen, moving away from a one-month low of 141.75 hit on Friday.
In Uruguaythe dollar rose 0.11% on Monday, reaching 40.389 pesos in the interbank exchange rate. Central Bank of Uruguay (BCU)The US currency has accumulated a monthly variation of 0.13% and an annual variation of 3.50%.
Doubts persist over the magnitude of the Fed’s rate cut
Friday’s jobs report left it unclear whether the Federal Reserve will cut interest rates by 25 or 50 basis points at its meeting next week. Traders are now awaiting the release of the Consumer price index US on Wednesday to have more certainty.
The strategists of Barclays They pointed out that the dollar It usually weakens before the relaxation cycles of the Fed and tends to overestimate rate cuts during so-called soft economic landings. Much of this movement, however, has likely already occurred.
Investors’ attention will also focus on the presidential debate in the United States, the first between the Republican Donald Trump and the democrat Kamala Harriswhich will be held tonight and could have a major impact on the November elections.
“If the debate produces a clear winner, you would expect the currency market to start ‘front-loading’ the positions it would have taken following the outcome of the November election,” said Chris Turner, head of currency strategy at ING.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
