“We agree with (Waller’s) comments and remain in the camp of the December cut,” he told Reuters. Mohit Kumar, Jefferies economist. “After December, we expect the pace of rate cuts to slow to one per quarter, with the next cut likely to be in March,” he added in an interview with Reuters.
He dollar index, which tracks the evolution of the US currency against six others, fell 0.07% to 106.29, while the euro rose 0.14% to $1.0512. Against the Japanese yen, the greenback weakened 0.15% to 149.38.
He korean won, After the shock in that country due to martial law declared and then lifted, it weakened 0.74% to 1,414.57 per dollar.
For its part, the performance of the treasury bonds Fed-sensitive two-year U.S. bonds fell to 4.1836% on Tuesday, approaching Friday’s four-week low.
Traders currently see a around 75% chance of a quarter-point cut at the conference meeting. Fed this month, up from 66% the day before and 52% a week ago, CME’s FedWatch tool showed.
JOLTS job openings data, a preferred gauge of Federal Reserve officials, will be released later on Tuesday, ahead of monthly payrolls numbers on Friday.
Gold goes up
The prices of gold rise on Tuesday, as renewed expectations for an interest rate cut in USA in December weighed on the dollar and Treasury yields ahead of economic data that could offer more signals on the path of U.S. monetary policy. Federal Reserve.
In the northern morning, the gold spot rose 0.2% to $2,644.79 an ounce, after falling as much as 1% on Monday. Gold futures in USA They gained 0.3% to $2,667.40.
“Several factors are influencing gold price action, including expectations of a Fed rate cut in December, the 10-year Treasury yield hovering around its lowest level since October and sustained safe-haven demand,” said Ricardo Evangelista, senior analyst at ActivTrades.
Markets are pricing in a 73% chance of a 25 basis point rate cut at the Dec. 17-18 meeting, up from 66% before the governor Fed, Christopher Waller on Monday signaled his support for a cut this month, citing that inflation is still expected to fall to 2%.
Source: Ambito
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