He US dollar was near its highest level in more than two months against major currencies on Tuesday, boosted by bets that The Federal Reserve will proceed with modest rate cuts in the near term.
A series of US data showed the resilience of the economy, while Inflation in September rose slightly more than expectedprompting traders to trim bets on further cuts.
The market looks at the Fed
The US central bank began its easing cycle with an aggressive 50 basis point move at its last monetary policy meeting in September, but Market expectations shifted toward a slower pace of cuts, which has boosted the dollar.
Traders now attribute almost 90% probability to a 25 basis point cut in Novemberwith 45 basis points of relaxation throughout the year.
Dollar index: how much it is trading at
The dollar index, which measures the US currency against six rivals, stood at 103.16, just below 103.36, the highest level since the August 8 hit on Monday, and rose after Fed Governor Chris Waller called for “more caution” about looming interest rate cuts.
The revaluation of the Fed “was the main driver of the dollar’s rebound, especially in relative terms with respect to other central banks”said Francesco Pesole, currency strategist at ING. “Waller’s comments have contributed to the strengthening of the dollar this week.”
He euro remained downward and hit its lowest level since August 8, at $1.0885, pending the European Central Bank’s monetary policy meeting on Thursday, in which it appears that it will cut interest rates again. interest, something that seemed unlikely at their last meeting in September.
The pound hit $1.3079 after British labor market data showed wages grew at their slowest pace in more than two years in the three months to August, which should allow the Bank of England to lower rates next month. coming.
For its part, the rise in the US currency made the yen towards 150 per dollar, especially after the change of moderate tone of the governor of the Bank of Japan, Kazuo Ueda, and the surprising opposition to further rate hikes by the new prime minister, Shigeru Ishiba.
He yenhowever, was trading slightly higher in early European trading at 149.29 per dollar, having fallen to 149.98 on Monday, its lowest level since August 1. The yen has lost 3.7% this month.
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.
