Forex News

Dollar weakens on peak Fed rate expectations

2022.11.15 03:58



Dollar weakens on peak Fed rate expectations

Budrigannews.com – The U.S. dollar weakened in early European trade Tuesday as more Federal Reserve officials indicated a slowdown in interest rate rises, with traders speculating a peak in rates might be close.

At 03:10 ET (08:10 GMT), the , which tracks the greenback against a basket of six other currencies, dropped 0.4% to 106.067, falling to a new three-month low.

Fed Vice Chair was, on Monday, the latest Fed official to comment on the state of the central bank’s battle against , echoing weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although likely at a slower pace.

“I think it will probably be appropriate soon to move to a slower pace of increases, but I think what’s really important to emphasize is … we have additional work to do,” Brainard said in an interview with Bloomberg in Washington.

Expectations are growing that the will increase interest rates by just 50 basis points in December, a smaller hike than the 75 basis points at the last four meetings.

This change in stance means the U.S. dollar has peaked and is set to decline in 2023, according to Morgan Stanley, expecting the Fed to make its final rate hike in January 2023, with a rate cut to follow in the fourth quarter.

The bank sees the dollar index sliding to 104 by the end of next year, while the euro will outperform. The index fell 4% last week, its worst week in more than two and a half years.

Later in the session, the headline U.S. producer price index for October is expected to rise 8.3% on an , a slower pace than September, and up 0.4% .

Elsewhere, rose 0.5% to 1.1810, climbing close to Friday’s 2-1/2-month top of 1.1855, after U.K. pointed to a tight labor market.

The number of people claiming in the U.K. rose by just 3,300 in October, less than feared, while growth excluding bonuses accelerated in the year through September to 5.7%, climbing at the fastest pace in more than 20 years.

Even though earnings are still running well below an rate of around 10%, the figures indicate little slack in the economy that would allow the to stop its sequence of interest rate rises.

rose 0.8% to 1.0410, climbing to a new three-month high, while the risk-sensitive rose 0.8% to 0.6750.

fell 0.3% to 139.50, with the yen benefiting from the wider weak dollar tone even as data showed the world’s third largest at an annualized rate of 1.2% in the third quarter.

fell 0.5% to 7.0355, with the yuan helped by the holding interest rates unchanged for a third straight month, outweighing data showing weaker-than-expected and in October.



Source link

Dollar weakens on peak Fed rate expectations

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 94,868.42 2.01%
ethereum
Ethereum (ETH) $ 3,477.50 4.09%
tether
Tether (USDT) $ 1.00 0.07%
solana
Solana (SOL) $ 238.54 4.71%
bnb
BNB (BNB) $ 640.82 2.29%
xrp
XRP (XRP) $ 1.44 2.72%
dogecoin
Dogecoin (DOGE) $ 0.400783 5.45%
usd-coin
USDC (USDC) $ 1.00 0.03%
cardano
Cardano (ADA) $ 0.987135 2.01%
staked-ether
Lido Staked Ether (STETH) $ 3,476.58 4.08%
avalanche-2
Avalanche (AVAX) $ 42.57 4.51%
tron
TRON (TRX) $ 0.198117 4.13%
the-open-network
Toncoin (TON) $ 6.20 1.55%
stellar
Stellar (XLM) $ 0.503094 10.97%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 1.60%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,119.18 4.21%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,465.31 2.16%
polkadot
Polkadot (DOT) $ 8.44 3.17%
chainlink
Chainlink (LINK) $ 17.83 2.01%
weth
WETH (WETH) $ 3,475.67 3.97%
bitcoin-cash
Bitcoin Cash (BCH) $ 503.69 0.95%
sui
Sui (SUI) $ 3.18 5.18%
near
NEAR Protocol (NEAR) $ 6.70 0.92%
pepe
Pepe (PEPE) $ 0.000019 3.73%
leo-token
LEO Token (LEO) $ 8.22 2.79%
litecoin
Litecoin (LTC) $ 94.56 2.14%
uniswap
Uniswap (UNI) $ 11.46 7.17%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,661.99 4.39%
aptos
Aptos (APT) $ 12.07 0.56%
internet-computer
Internet Computer (ICP) $ 11.86 4.14%
usds
USDS (USDS) $ 1.00 0.30%
hedera-hashgraph
Hedera (HBAR) $ 0.136593 5.92%
crypto-com-chain
Cronos (CRO) $ 0.183026 2.69%
ethereum-classic
Ethereum Classic (ETC) $ 30.51 7.55%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.572429 3.23%
bittensor
Bittensor (TAO) $ 545.29 7.53%
render-token
Render (RENDER) $ 7.71 1.57%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
arbitrum
Arbitrum (ARB) $ 0.944382 12.93%
kaspa
Kaspa (KAS) $ 0.152299 0.63%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.46 3.20%
celestia
Celestia (TIA) $ 8.11 3.65%
dai
Dai (DAI) $ 1.00 0.01%
whitebit
WhiteBIT Coin (WBT) $ 23.99 1.17%
filecoin
Filecoin (FIL) $ 5.62 0.64%
vechain
VeChain (VET) $ 0.041451 4.14%
bonk
Bonk (BONK) $ 0.000044 6.79%
blockstack
Stacks (STX) $ 2.18 10.03%
dogwifcoin
dogwifhat (WIF) $ 3.22 3.48%
okb
OKB (OKB) $ 53.54 1.01%