Analysts speak of “some profit taking”, but assure that the outlook for the Fed’s decision on rates remains unchanged.
He global dollar fell and moved away from the three-month highs reached during the previous session, as the euro and the Japanese yen strengthened, amid data supporting the prospects for slower rate cuts by the Federal Reserve (Fed) of the United States.
He dollar index —which measures the performance of the greenback relative to a basket of six other internationally relevant currencies— fell 0.37% to 104.05, its first decline after three consecutive sessions of gains, with the euro rising 0.39% to $1.0823 after hitting a nearly four-month low of $1.076 on Wednesday.
Meanwhile, against the Japanese yen, the dollar weakened 0.6% to 151.83. BOJ Governor Kazuo Ueda He said the currency’s recent decline was driven in part by optimism about the U.S. economic outlook and that the central bank needs to further analyze whether that optimism holds.
Economic data and “profit taking”
The initial requests for unemployment benefit weekly claims fell this Thursday to 227,000, below the 242,000 estimates of economists polled by Reuters, while continuing claims rose to a nearly three-year high. However, the Fed is likely to dismiss the increase in claims earlier this month due to distortions caused by the Hurricane Helene.
An independent report from S&P Global indicated that his index PMI The U.S. Output Composite, which tracks the manufacturing and service sectors, rose to 54.3 this month from a final reading of 54.0 in September. A reading above 50 indicates expansion.
“We’re seeing some profit taking here,” he said. Joseph Trevisani, senior analyst at FXStreet in New York.
“But of course, behind all of this is the change in rates and the perception of what the Federal Reserve is going to do. And that hasn’t changed, so for the moment, we’re holding on,” he said.
Source: Ambito
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