The American president-elect chose Scott Bessent as head of the Treasury of the North American giant.
He global dollar gave way after a strong advance, since the election of Scott Bessent like the future Secretary of the Treasury in the United States reassured the bond market about fiscal discipline, putting downward pressure on bond yields and trimming some of the currency’s advantage.
He dollar index which measures the greenback against a basket of six other currencies, including the yen and the eurofell 0.61% to 106.83, which was more than 1% below a two-year high set on Friday. The pound sterling strengthened 0.33% to $1.2572 after hitting a six-week low on Friday.
For his part, the mexican peso strengthened 0.87% against the dollar to 20,272 Mexican pesos, while the Canadian dollar weakened 0.01% to 1.4 per dollar. He chinese yuan It hardened 0.22% against the greenback to 7.245 per dollar.
However, Bessent has also openly favored a strong dollar and has supported tariffs, suggesting any currency pullback could be fleeting.
He dollar It has been on the rise for eight consecutive weeks, with many technical indicators overbought on bets that Trump’s policies will stoke inflation and further support the greenback.
“The price fixing in several US assets was pushed quite aggressively in one direction for three weeks,” said BNY’s Geoff Yu. “The markets “They probably need to take a breather when it comes to their dollar positions.”
The look at the Fed
Market participants are also awaiting the minutes of the November meeting of the Federal Open Market Committee (FOMC) of the Federal Reservethe data of the GDP (first review) and core CPI figures, all expected this week.
“Markets generally expect the Federal Reserve cut rates by 25 basis points at its next meeting on December 18, although traders have reduced their bets in recent days,” Frank Watson, market analyst at Kinesis Money, said in a note.
Traders currently see a 56% chance of another 25 basis point rate cut in December, according to CME’s Fedwatch tool.
Source: Ambito
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