Dollar returned losses in the American session
2022.12.05 13:50
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Dollar returned losses in the American session
Budrigannews.com – On Monday, a US services gauge showed that the economy is still doing well, boosting expectations that the Federal Reserve will keep raising interest rates.
After data showed that the Institute for Supply Management’s gauge of services rose unexpectedly in November, the Bloomberg Dollar Spot Index rose as much as 0.8 percent, breaking a four-day losing streak.
The Japanese yen was the worst performer as a result of the overall rally in the dollar, which was driven by higher US Treasuries and a reduction in newly established speculative long positions.
With real money buying limiting losses, the euro erased earlier gains.Brad Bechtel, a currency strategist at Jefferies based in New York, wrote in an email, “Asset markets are very correlated right now and when you get good data in the US, then equities sell, rates rise, and the USD rises with it, and vice versa.”As we get closer to the US CPI print, investors will try to get ahead of the data, and a lot of the moves we’ve seen over the past few weeks will start to unravel.
After losing 1.3% last week, the dollar is recovering.In his speech on Wednesday, Federal Reserve Chair Jerome Powell said that the fight against inflation is far from over and that the pace of rate hikes was slowing down. After stronger-than-expected US jobs data once more reassured investors of future hikes ahead of the Fed’s meeting in December, the currency was able to finish the day little changed on Friday.
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