He global dollarThe safe haven dollar fell on Thursday on rising risk appetite as traders looked to economic data due later in the day for clues on the pace of interest rate cuts by the central bank. United States Federal Reserve (Fed).
“In the currency market today, it’s all about the Fed’s monetary policy stance and U.S. economic data,” said Nick Andrews, a currency strategist at HSBCto Reuters.
He dollar indexwhich measures the currency against the eurothe pound sterlinghe yen and three other major currencies, was down 0.20% at 100.73, following a 0.57% jump on Wednesday, its biggest one-day gain since June 7.
Mark Haefele, Chief Investment Officer of UBS Global Wealth Managementpredicts a weak dollar due to the Fed will cut rates at a faster pace than its peers.
He Swiss Franc rose 0.4% against the dollar to 0.8468, and 0.25% to 0.9442 against the euro after the Swiss National Bank (SNB) cut interest rates by 25 basis points.
SNB President Thomas Jordan said the central bank was ready to cut rates again and recently acknowledged the difficulties the rising franc has created for exporters.
Later on Thursday, Federal Reserve Chairman Jerome Powellis scheduled to deliver pre-recorded remarks at a conference in New York, where New York Federal Reserve President George W. Bush will also speak, John Williams.The president of the Boston Federal Reserve, Susan Collinsand the governors of the Federal Reserve, Michelle Bowman and Lisa Cookwill also be on the podium in several other places.
Weekly data of unemployment claims in the United States will be closely scrutinized, given the Federal Reserve’s shift in focus toward employment rather than the inflation.
He euro rose 0.13% to $1.1148, after retreating from $1.1214, a high not seen since July last year.
Some analysts said a better outlook for Chinese demand after the stimulus plan announcement fed back into expectations for the German and, more broadly, Chinese economies. Europe.
He yen hit a three-week low of 145.04 per dollar and was last trading at 144.56. Investors closely followed political developments as the Liberal Democratic Party will elect a new leader on Friday, with the winner taking over as prime minister due to the party’s majority in the Parliament.
He Chinese Yuan rose 0.46% to 7.0 per dollar in offshore trading after retreating on Wednesday from its highest level since May last year at 6.9952.
Source: Ambito
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