© Reuters. US dollar bills are shown in this illustration taken, February 14, 2022. REUTERS/Dado Ruvic/Illustration
by Herbert Lash
NEW YORK (Reuters) – The dollar rebounded on Thursday after reports of private jobs and unemployment benefits indicated that the US labor market remained strong, raising the possibility that the Federal Reserve will raise interest rates later this month.
The number of Americans filing new claims for unemployment benefits rose moderately last week, the Labor Department said, while private payrolls rose last month in the largest increase since February 2022, the ADP National Employment Report shows.
A survey by the Institute for Supply Management (ISM) showed that the US services sector grew faster than expected in June as new orders rebounded, adding to data pointing to the economy’s resilience in the face of tighter monetary policy.
While the ISM showed that a measure of prices paid by businesses fell to more than its lowest level in three years, the inflation indicator would continue to ease, Dallas Fed President Lori Logan said she was very concerned “whether inflation will return to target properly.” sustainable and timely. way.”
And it rose, which measures the greenback against six others, including the euro and the Japanese yen, by 0.18% to
103.51.
Major central banks are mostly setting monetary policy, said Brad Picktel, global head of foreign exchange at Jefferies, and it’s not clear when they will act when they alternate between raising interest rates and pausing them.
“Given that all of these central banks are in the same place more or less in some way, shape or form, the dollar is going to have a hard time” moving one way or the other, he said.
“What the dollar is going forward with is usually in a cycle where global growth is slowing like we are now, and the dollar is outperforming.”
Markets are pricing in a 94.9% chance that the Federal Reserve will raise interest rates by 25 basis points at its policy meeting later this month, according to CME Group’s (NASDAQ:) FedWatch.
The Japanese Yen rose 0.03% against the Dollar at 144.58 as concerns about the global growth outlook, stemming from strong monetary tightening by major central banks, weighed on risk appetite.
The Japanese currency has traditionally been considered a safe haven asset.
after one
The pound hit a two-week high against both the euro and the dollar as financial markets are betting that the Bank of England will raise interest rates to 6.5% early next year, pushing yields on two-year British government bonds to their highest levels since June 2008.
“The FX market is taking more of a ‘one-dimensional approach’ to trading the British disease,” said Stephen Gallo, global forex strategist at BMO Capital Markets.
“Instead of selling pounds sterling in anticipation of an economic slowdown, they are buying pounds sterling based on interest rate differentials,” Gallo said.
The price was last traded at 7.27177 per dollar in the foreign market, after falling by about 0.4% in the previous session. The central bank outlined a stronger-than-expected midpoint fix for the fourth consecutive day this week, which traders believe is an attempt to prevent the yuan from weakening too quickly and too far. (CNY/)
It reached a 13-month high of $31,500 and continued to be supported by recent plans by fund managers to launch a US-listed spot foreign exchange fund (ETF).
The coin bid prices at 10:42 am (1442 GMT).
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
previous change
a class
Dollar Index 103.5100 103.3400 +0.18% 0.019% +103.5700 +102.9100
EUR/USD 1.0838 USD 1.0853 -0.13% + 1.15% + 1.0901 USD + 1.0834 USD
USD/JPY 144.5950 144.6650 -0.04% +10.29% +144.6500 +143.5600
EUR/JPY 156.71 157.00 -0.18% +11.70% +157.0600 +155.8500
USD/CHF 0.8992 0.8988 +0.06% -2.74% +0.8997 +0.8951
GBP/USD $ 1.2678 $ 1.2703 -0.20% + 4.83% + $ 1.2780 + $ 1.2674
USD/CAD 1.3369 1.3285 +0.63% -1.33% +1.3370 +1.3276
AUD/USD 0.6603 USD 0.6654 -0.78% -3.15% + 0.6688 USD + 0.6599 USD
EUR/CHF 0.9744 0.9755 -0.11% -1.53% +0.9766 +0.9738
EUR/GBP 0.8547 0.8542 +0.06% -3.36% +0.8553 +0.8521
$0.6134 0.6179 -0.74% -3.41% + $0.6219 + $0.6133
dollars / dollars
Dollar / Norway 10.8200 10.6820 +1.23% +10.18% +10.8240 +10.6520
Euro / Norway 11.7288 11.5894 +1.20% +11.77% +11.7333 +11.5690
USD/Sweden 10.9835 10.9373 +0.30% +5.53% +10.9906 +10.9223
Euro / Sweden 11.8995 11.8636 +0.30% +6.73% +11.9409 +11.8712