Connect with us
  • tg

Forex

Current dollar rate as of today: The dollar is rising against the euro and the pound, slightly falling against the yen

letizo News

Published

on

current dollar rate as of today

Current dollar rate as of today: The dollar is moderately strengthening against the euro and pound sterling. but slightly declining against the Japanese yen after the publication of macroeconomic data from China.

As it became known on Monday, growth in retail sales and industrial production in China in July was weaker than analysts’ forecasts. Retail sales rose 2.7% year-on-year instead of the expected 5% growth, and industrial production growth in China slowed down to 3.8% last month from 3.9% in June, although the analysts’ consensus forecast for the indicator was a 4.6% rise.

U.S. current dollar rate – What’s happening in the market? 

Worse-than-expected, statistical data has increased the demand for protective assets, including the yen (to a larger extent) and the dollar.

The People’s Bank of China injected 400 billion yuan (almost $60 billion) into the financial system as part of its medium-term lending program (MLF) to support the Chinese economy, and cut the rate on one-year MLF loans by 10 basis points to 2.75% per year.

The so-called offshore yuan (traded outside mainland China) fell 0.5% to 6.7738 yuan/$1 in Hong Kong amid the easing of monetary policy.

Other important events for world markets this week will be the publication of the minutes of the Federal Reserve’s meeting in July on Wednesday and the report on U.S. retail sales on Friday, says Trading Economics.

The euro fell 0.2% to $1.0238 against the dollar, down from $1.0259 at market close last Friday. The pound fell by 0.38% to $1.2092 from $1.2138 at the close of the previous session.

In pair with the yen, the rate of the American currency is 133.38 yen against 133.42 yen on Friday, dropping by 0.2%.

The ICE index showing the dollar’s movement against six currencies (euro, Swiss franc, yen, Canadian dollar, British pound and Swedish krona) was up 0.18% in trading. The broader WSJ Dollar Index adds 0.15%.

We previously reported that markets get restless ahead of the weekend

Forex

Dollar at 2-week high, euro softer as market bets on rate cuts

letizo News

Published

on

Dollar at 2-week high, euro softer as market bets on rate cuts
© Reuters. U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Hannah Lang

WASHINGTON (Reuters) -The U.S. dollar was at a two-week high on Wednesday, while the euro was weak across the board as markets ramped up bets that the European Central Bank (ECB) will cut interest rates as early as March.

Although markets are still pricing at least 125 basis points of interest rate cuts from the U.S. Federal Reserve next year, the dollar was able to hold steady as rate cut bets for other central banks intensified.

The , which measures the currency against six other majors, was last up 0.19% at 104.16. The euro was down 0.29% to $1.0764.

Traders are betting that there is around an 85% chance that the ECB cuts interest rates at the March meeting, with almost 150 basis points worth of cuts priced by the end of next year. Influential ECB policymaker Isabel Schnabel on Tuesday told Reuters that further interest rate hikes could be taken off the table given a “remarkable” fall in inflation.

The euro also touched a three-month low against the pound, a five-week low versus the yen and a 6-1/2 week low against the Swiss franc.

“It’s a reasonably sized sell-off and the market is trying to digest, is it just a correction? Did the market get over-exuberant in the previous weeks? I think there is definitely an element of that,” said Amo Sahota, director at FX consulting firm Klarity FX in San Francisco.

‘A BIT OVERBOARD’

The ECB will set interest rates on Thursday next week and is all but certain to leave them at the current record high of 4%. The Fed and Bank of England are also likely to hold rates steady next Wednesday and Thursday respectively.

The Bank of Canada on Wednesday held its key overnight rate at 5% and, in contrast to its peers, left the door open to another hike, saying it was still concerned about inflation.

Traders have priced around a 60% chance of the U.S. central bank cutting rates in March, according to CME’s FedWatch tool.

“Markets have aggressively priced in rate cuts, without any kind of confirmation from central banks,” said Adam Button, chief currency analyst at ForexLive in Toronto. “As December continues, we need either a change in tune from central bankers or a repricing in markets.”

If the Fed were to cut rates as markets expect, it could result in the dollar loosening its grip on other G10 currencies next year, dimming the outlook for the greenback, according to a Reuters poll of foreign exchange strategists.

The spotlight in Asia was on China, as markets grappled with rating agency Moody’s (NYSE:) cut to the Asian giant’s credit outlook.

The offshore was flat at $7.1728 per dollar, a day after Moody’s cut China’s credit outlook to “negative”.

China’s major state-owned banks stepped up U.S. dollar selling forcefully after the Moody’s statement on Tuesday, and they continued to sell the greenback on Wednesday morning, Reuters reported.

Elsewhere in Asia, the Japanese yen weakened 0.15% versus the greenback at 147.38 per dollar. The Australian dollar fell 0.02% to $0.65495.

In cryptocurrencies, bitcoin eased 0.06% to $44,049, still near its highest since April 2022.

The world’s largest cryptocurrency has gained 150% this year, fueled in part by optimism that a U.S. regulator will soon approve exchange-traded spot bitcoin funds (ETFs).

Continue Reading

Forex

Canadian dollar forecasts turn less bullish as BoC rate cuts eyed: Reuters poll

letizo News

Published

on

Canadian dollar forecasts turn less bullish as BoC rate cuts eyed: Reuters poll
© Reuters. FILE PHOTO: A Canadian dollar coin, commonly known as the “Loonie”, is pictured in this illustration picture taken in Toronto January 23, 2015. REUTERS/Mark Blinch/File Photo

By Fergal Smith

TORONTO (Reuters) – Analysts see less upside for the Canadian dollar than previously thought over the coming year as recent data showing a slowdown in the domestic economy brings forward the expected start of Bank of Canada interest rate cuts, a Reuters poll found.

The median forecast of 35 foreign exchange analysts surveyed in the Dec. 1-5 poll was for the Canadian dollar to strengthen 0.4% to 1.3533 per U.S. dollar, or 73.89 U.S. cents, in three months, compared with 1.3450 in a November poll.

It was then expected to advance to 1.3130 in a year, versus 1.3000 in last month’s forecast.

“Our view is the Canadian dollar is going to face a difficult next three months as the data starts to look like the Canadian economy is teetering on the edge of recession if not in a mild recession,” said Simon Harvey, head of FX analysis for Monex Europe and Monex Canada.

The Canadian economy unexpectedly contracted at an annualized rate of 1.1% in the third quarter, avoiding a recession after an upward revision to the previous quarter but showing growth stumbling.

Soft domestic data “should bring forward expectations of BoC easing, especially relative to the Federal Reserve,” Harvey said. “Earlier Bank of Canada easing is going to widen rate differentials in favor of USD-CAD.”

Money markets expect the Canadian central bank to leave its benchmark interest rate on hold at a 22-year high of 5% at a policy announcement on Wednesday and then begin easing policy as soon as March. As recently as October, there were no rate cuts priced in for 2024.

A separate Reuters poll, from last week, showed economists expect the BoC to start cutting rates in the second quarter of next year and borrowing costs will drop by at least one percentage point by the end of next year.

The Canadian 2-year yield has fallen further below its U.S. equivalent in recent weeks to a gap of 54 basis points, which is the widest since March.

A lower yield tends to make a currency less attractive to investors.

(For other stories from the December Reuters foreign exchange poll:)

Continue Reading

Forex

Dollar edges lower; euro hit by weak German factory orders

letizo News

Published

on

Dollar edges lower; euro hit by weak German factory orders
© Reuters.

Investing.com – The U.S. dollar edged lower in early European trade Wednesday, but remained near a two-week high, ahead of key employment data, while the euro headed lower after weak German factory orders.

At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 103.925, having climbed 0.3% overnight. 

The index is up 0.5% this month, after sliding 3% in November, its steepest monthly decline in a year.

Labor market data in focus

Recent data has generally pointed towards a slowing U.S. economy, although signs still point to a likely soft landing. 

Tuesday’s release showed U.S. fell to more than a 2-1/2-year low in October, the strongest sign yet that higher interest rates were dampening demand for workers. 

The labor market will remain in focus Wednesday, with the later in the day, setting up Friday’s monthly report.

“We suspect markets are holding a more cautious stance as we head into the key U.S. payroll figures on Friday and the Fed meeting next week, where there is a good probability the FOMC will deliver a protest against rate cut bets – especially if data fails to turn lower,” said analysts at ING, in a note.

Euro continues to weaken

In Europe, edged lower to 1.0794, close to Tuesday’s three-week low, after slumped 3.7% on the month in October, a sharp drop after gaining 0.7% the prior month.

Recent data has pointed to the eurozone heading into a recession in the final quarter of the year, as its economy contracted 0.1% in the third quarter, according to official data.

Eurozone are seen rising 0.2% monthly in October later in the session, an annual drop of 1.1%, as consumers in the region continue to struggle, ahead of the festive period.

This economic slowdown, coupled with inflation across the euro zone falling more quickly than most anticipated, has led many to think that the could deliver its first rate cut by March. 

“Shorting the euro appears to be one of the most popular bets in FX at the moment,” ING added. 

rose 0.1% to 1.2604, ahead of the release of the latest Bank of England .

Yuan hit by Moody’s downgrade

In Asia, rose 0.4% to 0.6576, recovering from two days of steep losses even as data showed Australia’s grew less than expected in the third quarter, hit chiefly by declining export demand in China. 

traded 0.1% higher to 147.21, steadying after the yen recorded a sharp recovery against the dollar in recent sessions.

traded 0.2% higher at 7.1589, with sentiment towards the yuan battered by ratings agency Moody’s, which downgraded the country’s credit outlook to negative and flagged increased economic risks from a property market downturn.

 

Continue Reading

Trending

©2021-2023 Letizo All Rights Reserved