Sun, April 14, 2024

The Dollar Started the Week at A Nine-Month Low

dollar, euro,

As market participants bet on the Federal Reserve of the United States reducing the size of its interest rate hikes for a second consecutive meeting in February, the dollar started the week testing a new nine-month low.

The “quiet period” for the Federal Reserve begins before its policy meeting on February 1. However, a report published over the weekend in The Wall Street Journal increased confidence that the next move higher will be modest, at 25 basis points as opposed to the 50 basis points seen at the previous meeting.

Despite the continued strength of the labor market, a string of weak economic data was released last week, including sharp declines in retail sales and industrial production, giving the impression that the US economy slowed down significantly at the end of the year.

DXY and Other Currencies

The dollar index, which measures the value of the US currency against a basket of advanced-market currencies, was down 0.34% at 101.515, extending its losses from the previous week. It had now reversed nearly all of its gains since the Fed began raising interest rates last March.

Other currencies’ interest rates are outperforming because those institutions are still playing catch-up. The euro rose 0.5% to $1.0913 following a series of comments from ECB officials at the World Economic Forum insisting that the next rate move will be “significant,” i.e., more than 25 basis points.

The yen also strengthened as markets tested the Bank of Japan’s willingness to defend its long-term bond yield target.

Markets should be relatively quiet on Monday due to the start of China’s Lunar New Year holiday and a lack of market-moving data elsewhere.

However, after their respective nations started discussing the creation of a common currency, the Brazilian real and the Argentine peso will probably be in the spotlight later. In contrast to the peso, the real has recently been a model of stability despite always being volatile.

YOU MAY ALSO LIKE

Market Trends

Quick Look: Cronos Group stock fell by 2.53%, closing at $3.47. Trading

The Central Bank of Russia and crypto, nickel

Quick Look: Nickel smelting causes local communities severe health problems and environmental

Tractable raises $60M to grow in accident - robot recovery

Quick Look: The Robot Market in China is projected to grow from

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Axi Renews CFD Sponsorship Deal with Football

The Australian Federal Court has ordered Prospero Markets, a trading broker for forex and CFDs, to shut down and has appointed a liquidator to refund client money. This move follows a demand from

BROKER NEWS

Broker News

Axi Renews CFD Sponsorship Deal with Football

The Australian Federal Court has ordered Prospero Markets, a trading broker for forex and CFDs, to shut down and has appointed a liquidator to refund client money. This move follows a demand from the