He dollar US moved away from its highest level in seven weeks on Monday after a rebound sparked by solid employment data from USA Friday and an escalation in the conflict Middle East.
The profits of dollar followed a jobs report USA which showed the biggest jump in six months in September, a drop in the unemployment rate and solid wage increases, all pointing to a resilient economy and forcing markets to reduce the prices of the rate cuts of the Federal Reserve.
Analysts said many of the factors that weighed on the dollar over the summer had reversed, citing easing concerns about a recession and price action that suggests the limits to pricing a currency function have been reached. moderate reaction with this data set.
“We do not see a factor that can rebuild the structural short positions in US dollars in the coming weeks,” said Francesco Pesole, currency strategist at ING. “Markets appear to have given up on another 50 basis point cut, and the inflation figures should not change that, and although the situation in Middle East may not worsen further, the consensus seems to be that a material de-escalation is not likely for now,” he added.
He dollar indexwhich measures the rate of the US currency against a basket of six currencies, fell 0.07% to 102.46, after rising to 102.69 on Friday, its highest level since mid-August. The dollar posted a weekly gain of more than 2% last week, the biggest in two years.
He euro fell just 0.01% to $1.0975, feeling some pressure after German industrial orders fell significantly more than expected in August, adding to signs that manufacturing in Germany’s largest economy Europe remains stagnant.
In front of swiss francthe dollar weakened 0.45% to 0.854, while the Canadian dollar weakened by 0.37% against the US dollar to 1.36 per dollar. For his part, the Australian dollar weakened 0.6% against the greenback and the kiwi weakened by 0.63%.
The pound sterling fell 0.25% to $1.3083. Last week it recorded its biggest daily drop since April after the governor of the Bank of England, Andrew Baileysaid the central bank could act more aggressively to reduce borrowing costs.
Source: Ambito
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