简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The U.S. dollar hovered on Tuesday just above a one-week low reached overnight versus major peers as markets reduced the odds of a percentage-point Federal Reserve rate hike this month.
The euro rallied on Tuesday after a Reuters story that European Central Bank policymakers will discuss whether to raise interest rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation.
The gains in the euro, which sent it surging away from the sub-parity levels of last week, come as falling expectations for an aggressive 100 basis point hike from the Federal Reserve later this month knocked the dollar.
The euro rose to as high as $1.0254, up 1.1% on the day and its strongest since July 6 as money markets priced in a 60% chance of a 50 basis point hike on Thursday, up from 25% on Monday.
The dollar index dropped 0.8% to 106.64. That was below Mondays low of 106.88 but also well back from the high of 109.29 last week, a level not seen since September 2002.
Analysts are reluctant to turn bullish on the euro given the regions economic headwinds and ongoing concerns about supplies of natural gas and the hit to its economy.
ING analysts said a “still-challenging environment in the euro zone is keeping any bullish sentiment” capped. “We continue to believe that another drop to parity is possible over the coming days,” they wrote.
Traders are also biting their nails ahead of Thursday, when gas is supposed to resume flowing through the Nord Stream pipe from Russia to Germany after a shutdown for scheduled maintenance.
Russias Gazprom declared force majeure on gas supplies to Europe to at least one major customer, in a letter dated July 14 and seen by Reuters on Monday.
Elsewhere, the Australian dollar soared 1.2% to $0.6894 after Reserve Bank of Australia policymakers said they saw the need for more policy tightening on top of recent hikes.
“The RBA board has lifted the intensity of its rhetoric,” Westpac economist Bill Evans wrote in a research note. “Another 50 basis points in August seems highly likely.”
The Japanese yen rose but was not far from a 24-year low ahead of a Bank of Japan policy decision on Thursday, with the central bank committing repeatedly in recent days to continued ultra-easy settings.
Sterling gained 0.6% to $1.2017, near Mondays one-week high of $1.2032. It slumped to $1.1761 on Thursday for the first time since March 2020, with Britain facing an acrimonious and divisive contest to replace ousted prime minister Boris Johnson.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Saxo Bank launched an attractive promotion for new clients that offers zero commission trading on transactions for the 100 most popular US stocks. This campaign began on September 17, 2024, and runs until December 31, 2024. It aims to attract clients who want to invest without paying trading costs.
MetaQuotes now offers Nasdaq real-time tick data in MetaTrader 5. Subscribe for accurate market analysis, improved trading strategies, and flexible subscription plans.
Federal Reserve Cuts Rates for the First Time in Four Years. On September 18, Bank of America Global Research revealed an upward adjustment in its forecast, expecting the Federal Reserve to implement a total of 75 basis points in rate cuts by year-end.
The Federal Reserve’s decisions to raise or cut interest rates are among the most influential drivers of market activity, particularly in the forex and cryptocurrency markets. Understanding the impact of rate changes is crucial for market participants, as it helps them anticipate potential movements and adjust their strategies accordingly.