Forex News

Asia FX muted, dollar steadies as inflation data looms

2023.05.10 01:39


© Reuters

Investing.com — Most Asian currencies moved in a flat-to-low range on Wednesday, while the dollar steadied amid caution before key U.S. inflation data due later in the day, while concerns over a sluggish economic recovery in China continued to weigh.

The fell 0.1%, inching closer towards the 7 level against the dollar as softer-than-expected data from the country raised questions over the sustainability of a post-COVID economic rebound.

China’s also grew at a slower pace in April, pointing to continued pressure on the manufacturing sector as it grapples with weak overseas demand. Markets are now awaiting data for April, due on Thursday, for any signs of a pickup in local spending.

Concerns over China weighed on other currencies with trade exposure to the country. rose 0.1%, while the and the both traded sideways.

Risk-heavy Southeast Asian currencies retreated slightly, with the and the down 0.1% each.

The rose 0.1%, rising for seven of the past eight sessions after a surprise interest rate hike by the earlier this month.

The fell 0.1%, extending losses into a fourth straight session as expectations of dovish local monetary policy largely offset some safe haven demand for the currency.

Broader Asian currencies moved little, while the dollar steadied after two days of gains as markets hunkered down before U.S. inflation data due later in the day.

The and both moved less than 0.1% in either direction on Wednesday.

Wednesday’s reading is expected to show that while inflation eased further in April, it is still expected to read well above the Federal Reserve’s 2% target range. Markets fear that any signs of stubborn inflation will invite more hawkish measures from the Fed this year.

While the central bank is expected to keep its rate hike cycle on pause in the coming months, traders have been trimming their expectations for any interest rate cuts this year, following signs of strength in the jobs market.

show that markets are pricing in a nearly 78% chance that the Fed will keep rates on hold in June, as well as a 55% chance of a hold in July.

The Fed has also largely downplayed any expectations for a rate cut this year.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 94,658.36 1.65%
ethereum
Ethereum (ETH) $ 3,434.54 3.51%
tether
Tether (USDT) $ 0.998251 0.20%
solana
Solana (SOL) $ 238.53 3.98%
bnb
BNB (BNB) $ 639.97 1.61%
xrp
XRP (XRP) $ 1.46 5.83%
dogecoin
Dogecoin (DOGE) $ 0.400844 4.00%
usd-coin
USDC (USDC) $ 0.997892 0.18%
cardano
Cardano (ADA) $ 0.999811 1.48%
staked-ether
Lido Staked Ether (STETH) $ 3,435.21 3.42%
tron
TRON (TRX) $ 0.197132 3.92%
avalanche-2
Avalanche (AVAX) $ 41.51 3.81%
the-open-network
Toncoin (TON) $ 6.08 0.47%
stellar
Stellar (XLM) $ 0.503064 5.59%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 2.37%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,081.93 3.88%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,851.41 1.07%
polkadot
Polkadot (DOT) $ 8.41 0.55%
chainlink
Chainlink (LINK) $ 17.74 4.44%
weth
WETH (WETH) $ 3,446.19 3.94%
bitcoin-cash
Bitcoin Cash (BCH) $ 500.09 0.38%
sui
Sui (SUI) $ 3.16 5.29%
pepe
Pepe (PEPE) $ 0.000019 2.51%
near
NEAR Protocol (NEAR) $ 6.57 0.43%
leo-token
LEO Token (LEO) $ 8.31 1.39%
litecoin
Litecoin (LTC) $ 94.31 1.47%
uniswap
Uniswap (UNI) $ 11.33 8.54%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,624.00 3.64%
aptos
Aptos (APT) $ 11.96 0.10%
internet-computer
Internet Computer (ICP) $ 11.68 6.61%
usds
USDS (USDS) $ 0.996858 0.30%
hedera-hashgraph
Hedera (HBAR) $ 0.136976 3.89%
crypto-com-chain
Cronos (CRO) $ 0.182908 1.97%
ethereum-classic
Ethereum Classic (ETC) $ 30.76 10.15%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.561902 3.51%
render-token
Render (RENDER) $ 7.65 1.48%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.18%
bittensor
Bittensor (TAO) $ 521.37 3.68%
kaspa
Kaspa (KAS) $ 0.149746 0.06%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 1.62%
arbitrum
Arbitrum (ARB) $ 0.911406 10.36%
dai
Dai (DAI) $ 0.998737 0.08%
celestia
Celestia (TIA) $ 8.12 1.80%
whitebit
WhiteBIT Coin (WBT) $ 23.93 1.27%
filecoin
Filecoin (FIL) $ 5.62 2.77%
vechain
VeChain (VET) $ 0.041331 3.15%
bonk
Bonk (BONK) $ 0.000044 5.88%
blockstack
Stacks (STX) $ 2.14 9.06%
okb
OKB (OKB) $ 53.33 0.52%
dogwifcoin
dogwifhat (WIF) $ 3.17 2.27%