The US dollar fell in the European market on Friday to resume losses that were temporarily halted yesterday, on the verge of incurring a fourth consecutive weekly loss, in light of the current decline in the yield on ten-year US Treasury bonds.
Despite strong economic data released in the US on Thursday, markets still expect 100% for the Federal Reserve to cut US interest rates by at least 25 basis points in September.
Price outlook • US Dollar Index Price Today: The dollar index fell by 0.3% to (102.72) points, from the opening level of today’s trading at (103.04) points, and recorded the highest level at (103.05).
• The index ended Thursday’s trading up by 0.5%, in the first gain within the last five days, after the release of strong economic data in the United States.Weekly trading over the course of this week’s trading, which officially ends when price settlement today, the US dollar index is low so far about 0.5%, about to suffer the fourth consecutive weekly loss.
US Bond YieldThe yield on 10-year US Treasury bonds fell on Friday by 1.3 points, resuming losses that paused yesterday, to approach again the lowest levels in a week, which is negatively pressuring US dollar levels.
This development comes in the US bond market, where the market is still fully pricing the odds of the Federal Reserve cutting US interest rates by about 25 basis points in September.US interest • Retail sales recorded a rise that exceeded expectations in July, in the latest data indicating strong economic activity at the beginning of the third quarter of this year, in addition to the slowdown in jobless claims for the second week in a row.
Following these data, according to CME Group’s Feed Watch: the pricing of US interest rate cut prospects fell by about 50 basis points at the September meeting, stable from 38% to 22%, and the pricing of cut prospects rose by about 25 basis points from 62% to 78%.
In order to reprice the above contracts, investors are awaiting at successive times today important data on the US housing sector and on the five-year inflation forecast, in addition to the comments of some Federal Reserve officials.
If economic data is worse than market expectations and comments are less aggressive than expected, the odds of a US interest rate cut will rise by about 50 basis points in September, exacerbating current losses in US dollar levels.
Read also:Metamasek launches cryptocurrency payment card in collaboration with Mastercard
What stock should you buy in your next trade?
The computing forces of artificial intelligence are changing the stock market. ProPicks from Investing.com are 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks’ AI identified two stocks that jumped more than 150%, 4 more that jumped more than 30%, and another 3 stocks that jumped more than 25%. What is the arrow with the next jump?
