As U.S. Treasury yields fall,US dollar indexAfter softening on Monday (8th), giving back some of the gains after last week’s non-farm payrolls report, investors then focused on Wednesday’s (11th) inflation data for clues about the Federal Reserve’s next move.AUD、source of stringStrong bomb.
The United States announced on Friday that non-farm payrolls in July were unexpectedly strong, and the total employment and unemployment rate both returned to pre-pandemic levels, easing concerns about a recession and boosting expectations that the Federal Reserve will raise interest rates more aggressively. U.S. stocks opened higher on Monday amid continued optimism and traded lower in choppy trading as investors turned their attention to corporate earnings.
U.S. Treasury yields retreated after a surge on Friday, with traders estimating a 69 percent chance the Fed will raise rates by three yards at its September meeting, Refinitiv data showed.
Markets are awaiting Wednesday’s U.S. consumer price index (CPI), which analysts polled by Reuters expect will slow to 8.7 percent in July from an annual rate of 9.1 percent in the previous month.
Simon Harvey, head of foreign exchange analysis at Monex Europe, said: “The bar for a CPI-led dollar rally is lowering as the dollar’s weakness moves out of step with the dovish repricing in the currency markets.”
The dollar remains supported by economic data and hawkish comments from central bank officials who encouraged market participants to postpone expectations for a dovish turn in monetary policy, according to foreign exchange analysts at MUFG. Federal Reserve Governor Michelle Bowman hinted at the weekend that another 3 rate hikes may be possible in September.
EURUp 0.12% to $1.0193,GBPIt edged up 0.1% to $1.2081 against the dollar. British Foreign Secretary Liz Truss, who is expected to take over as prime minister next month, has said she will step up scrutiny of the Bank of England when she takes office.
Canadian DollarsIt rebounded from a near 3-week low on Monday, rising 0.56% to 1.2857 against the dollar, amid a rebound in oil prices and bets on sharp rate hikes Canadian Dollars, shrugging off the sluggish intraday trend on Friday. Even with the dismal jobs report, money markets are pricing in about a 67% chance that the Bank of Canada will raise rates by a factor of three in September.
Strategists at Scotiabank, including Shaun Osborne, said the underlying trend in Canadian job growth was solid, so even some weak reports would not significantly ease the central bank’s concerns about a very tight labor market.
As of Tuesday (9th) Taiwan time about 6:00 Price:
- US dollar indexReported at 106.3713. -0.2014%
- EURExchange rate against the US dollar (EUR/USD) at 1 EURAgainst $1.0193. +0.1179%
- GBPExchange rate against the US dollar (GBP/USD) at 1 GBPAgainst $1.2081. +0.0911%
- AUDExchange rate against the US dollar (AUD/USD) at 1 AUDAgainst 0.6981 yuan. +1.0567%
- dollar againstCanadian Dollars (USD/CAD) exchange rate at 1.2857 per US dollar Canadian Dollars。-0.5646%
- dollar againstJPY (USD/JPY) exchange rate at 134.95 USD JPY。-0.0148%