Dollar eases as traders bet Fed is done with rate rises
The dollar remained stable as investors weigh US jobs data that showed signs of cooling and the likelihood of the Federal Reserve ending its monetary tightening cycle.
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Posted 9/4/2023, 5:01:57 AM
channelnewsasia.com
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The US dollar remains strong against major peers and the yen, as Treasury yields rise amid expectations of high US interest rates for a longer period, while China's central bank sets a stronger-than-expected daily midpoint for the yuan to counter mounting pressure on the currency.
The US economy continues to perform well despite the Federal Reserve's interest rate hikes, leading to questions about whether rates need to be higher and more prolonged to cool inflation and slow growth.
Bitcoin and other cryptocurrencies remained stable on Wednesday after a significant decline, indicating a bearish trend supported by technical factors.
U.S. Federal Reserve Chairman Jerome Powell stated that restrictive monetary policy will continue until inflation slows, and the central bank is prepared to raise rates cautiously; the price of Bitcoin briefly dipped before recovering, while traditional markets saw modest gains.
The US dollar was cautious as traders awaited economic data, while the yen struggled near intervention levels as the dollar remained strong.
The Indian rupee remains steady against the US dollar due to corporate dollar demand and importers' activities.
The U.S. dollar rebounded from previous losses as investors awaited labor market data for clues on the Federal Reserve's policy path.
The gold market remains steady despite stable inflation pressures, suggesting that the US central bank may be able to end its tightening cycle.
US labor market remains strong despite signs of better balance, with future interest rate decisions dependent on incoming data, says Federal Reserve Bank of Cleveland President Loretta Mester.
Despite the divergence in global economies, the US dollar still remains dominant, holding a record-high share of 46% on SWIFT in July, while the euro's share slipped to a record low.
The US job market is cooling down, with signs of weakening and a slowdown in momentum, which may allow the Federal Reserve to ease inflation pressure through weaker job creation and reduced demand.
Gold prices remained stable near session lows as the latest data on the U.S. manufacturing sector showed improvement but still indicated contraction for the tenth consecutive month.
The US dollar weakened against major counterparts due to disappointing economic data, leading to a rally in gold prices and a less dovish Federal Reserve outlook, while the Australian and New Zealand Dollars performed well due to gains in Wall Street; crude oil prices also rallied despite deteriorating economic conditions in China.
The U.S. dollar drifted in cautious trading as investors considered U.S. jobs data that indicated a potential slowdown, suggesting that the Federal Reserve may be nearing the end of its monetary tightening cycle.
The US dollar edged lower as US markets were closed for a holiday, and investors considered US jobs data indicating signs of cooling, leading to speculation that the Federal Reserve may be at the end of its monetary tightening cycle.
The safe-haven dollar weakened as risk sentiment improved due to hopes of China's policy stimulus stabilizing the economy and U.S. jobs data suggesting a potential end to the rate hike cycle by the Federal Reserve.
The resilient growth of the US economy is fueling a rebound in the dollar and causing bearish investors to rethink their positions, although the currency's rally may face challenges from upcoming data and the Federal Reserve's meeting this month.
The dollar remains steady ahead of a key U.S. inflation report, but rises against the yen as traders digest comments from Japan's central banker on a possible early exit from negative interest rates.
The U.S. dollar stabilized as traders await U.S. inflation data, while sterling weakened after the U.K. economy contracted more than expected in July.
Cryptocurrency prices remained stable as inflation in the U.S. surpassed economists' expectations, with Bitcoin trading at around $26,100 and Ethereum experiencing a slight dip of 0.5%. The Federal Reserve will consider this report, among other factors, for its upcoming interest rate announcement on September 20. While inflation has decreased since June, it still exceeds the Fed's target of 2% annually. Core inflation, excluding volatile food and energy costs, decreased to 4.3% in August compared to July's 4.7%.
The dollar remains stable in Asia, while the yuan strengthens due to positive economic data from China.
Traders and investors are betting that the Federal Reserve will hold interest rates steady at its September meeting, indicating a shift in the market's interpretation of good economic news, as it suggests the Fed may be close to pausing its rate hike cycle despite inflation being above target levels and potential headwinds in the economy.
The US dollar remains stable in Asian trades as the yen and sterling experience slight fluctuations due to upcoming central bank meetings, including the Bank of Japan's policy meeting, the US Federal Reserve's hawkish pause, and the Bank of England's possible interest rate increase.
US stocks remain steady as investors anticipate the Federal Reserve's interest rate decision and closely watch negotiations in the US auto workers strike.
U.S. Treasury yields remained steady as investors awaited fresh economic data and the conclusion of the Federal Reserve's September meeting, with expectations of unchanged interest rates but uncertainty about future policy.
The Federal Reserve is expected to hold its benchmark lending rate steady while waiting for more data on the impact of previous rate hikes on the US economy, but there is still a possibility of another rate increase in the future.
The US dollar remained strong against other currencies as traders awaited the Federal Reserve's rate decision, while the yen hovered near a 10-month low amidst speculation of intervention.
The dollar strengthens and stocks decline as the Federal Reserve delivers a "hawkish pause" during the Fed meeting, with updates on the interest-rate decision, dot plot, and Jerome Powell press conference.
World markets attempt to stabilize following a week of central bank decisions, as the dollar hits 6-month highs due to the hawkish stance of the Federal Reserve, while the Bank of Japan remains dovish and business readouts offer some soothing economic news.