The dollar index regained ground, while the yuan lost value, in a session that was marked by volatility.
He global dollar bounced on Wednesday from a 14-month low against the euro in a volatile session, but investors maintained their bets that the United States Federal Reserve (Fed) will make another big interest rate cut at its November meeting as job optimism wanes
He dollar index rose 0.68% to 100.91. It had earlier fallen to 100.21, matching a low set on Sept. 18, which was the weakest since July 2023.
Meanwhile, the euro The dollar fell 0.41% to $1.1134, after earlier touching $1.1214, its highest level since July 2023. In addition, the greenback gained 1.03% to 144.68 Japanese yen and reached 144.75, its highest level since the 3rd of this month.
The behavior of the Chinese yuan and the forecasts for the Fed
He yuan The dollar also weakened amid growing doubts about the impact of a new round of Chinese stimulus and after the initial rally following the news was seen as overdone. Riskier currencies, including some emerging market currencies that had rallied on the back of stimulus, also fell.
“We are seeing a number of risk-sensitive asset classes pulling back from the levels that were reached after that announcement, and that is really due to a skepticism among investors about whether the measures that were announced will be successful in boosting growth in the real economy,” he said. Karl Schamotta, chief market strategist at Corpay in Toronto.
“Markets are interpreting this as a signal that the Federal Reserve is very likely to implement a second emergency rate cut at its November meeting,” he added.
Traders now see a 59% chance of a 50 basis point cut at the Fed’s Nov. 7 meeting, up from 37% a week ago, and a 41% chance of a 25 basis point reduction, according to the tool. FedWatch from the CME Group.
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.
