Product

Learn

Company

AKTIO coin

Dollar slips as bets mount for less hawkish Fed, euro above parity

MARKET_WATCH Economy

The dollar stood close to a more than one-month low against a basket of currencies on Thursday, amid growing hopes that the U.S. Federal Reserve will shift to less aggressive interest rate hikes to temper recession risks.

The euro peaked at $1.00935 ahead of an expected ECB rate hike later in the session, while sterling was at $1.1645 in early Asia trade, both their highest since Sept. 13, though they later pared gains and fell about 0.1% each.

 

Meanwhile, the yen gained some footing ahead of Friday's policy decision by the Bank of Japan, rising to 145.11 per dollar, its highest since Oct. 21.

 

It was last up 0.72% at 145.35 per dollar, perhaps buoyed by some speculation of a policy tweak by the BOJ, though most analysts expect it will keep ultra-low interest rates steady.

"Fundamentally, there are factors that are still favouring the U.S. dollar: rate differentials, the fact that the Fed still has more work to do," said Rodrigo Catril, senior currency strategist at National Australia Bank (OTC:NABZY).

"But certainly near term, given how much was priced (in), we've seen a bit of retracement in the dollar ... Our sense is that it's a bit of a consolidation of the recent moves rather than extension of further dollar declines."

 

 

Looking ahead to next week's FOMC meeting, markets are still expecting another 75 basis point (bps) hike, although sentiment is building that the Fed will opt for a smaller increase in December.

Housing data released this week, which showed that U.S. single-family home prices sank in August and sales of new U.S. single-family homes dropped in September, provided more evidence that the Fed's aggressive tightening cycle is already slowing the economy.

Overnight, the Bank of Canada announced a smaller-than-expected interest rate hike and said it was getting closer to the end of its historic tightening campaign.

The Canadian dollar last traded at 1.3547 per U.S. dollar.

Against a basket of currencies, the U.S. dollar index was up 0.05% at 109.61, after having slid to 109.54 earlier in the session, its lowest level in over a month.

The main focus on Thursday will be a rate decision by the European Central Bank, with markets expecting it to deliver a 75 bps hike.

 

"What the ECB says will be important," said National Australia Bank's Catril.

"The question is whether they want to ... show that full commitment to the inflation mandate, or whether they show weakness or concerns in terms of what looks to be a challenging growth outlook."


 

Source : www.investing.com/news/economy/dollar-slips-as-bets-mount-for-less-hawkish-fed-euro-above-parity-2922941 by Reuters - October 27, 2022

Join our 60k+
tribe of Akters

Have any questions?

Check our Q&A

About the AKTIO coin

Benefit fully from our ecosystem

What’s new in the App?

We’re adding new features

Customer support

support@akt.io

+353 1 574 7382

Opening hours:

Monday to Friday: 9am - 5pm CET

Company

About

AKTIO coin

Careers

Learn

News

Glossary

AKT Academy

Help

FAQ

Sitemap

System Status

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata ICO Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata Pay Ltd, Reg number 12208424 and incorporated in the United Kingdom is the registered agent of Modulr FS Limited, a company registered in England with company number 09897919, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573). Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata Pay Europe Limited, Reg number 69028 and incorporated in Ireland is the registered agent of Modulr FS Europe Limited, a company registered in Ireland with company number 638002, authorised and regulated by the Central Bank of Ireland as an Electronic Money Institution (Institution Code C191242). Traditional currency is safeguarded as e-money in accordance with our regulatory obligations. Traditional currency will be safeguarded by a licensed bank in segregated accounts in accordance with regulatory requirements.

Automata ICO Limited, Reg number 690280 and incorporated in Ireland has applied for a Virtual Asset Service Provider registration with the Central Bank of Ireland. Whilst the application is ongoing we are permitted to continue business as a Virtual Asset Service Provider in line with the Central Bank of Ireland's regulatory disclosure statement as required under section 106L of the CJA 2010 in relation to registered VASPS. It is important to note that a registration as a VASP is a registration for Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) purposes only. While Automata ICO Limited does have certain financial crime control obligations under this registration, cryptoasset services remain largely unregulated. The Financial Ombudsman Service or the Financial Services Compensation Scheme do not apply to the cryptoasset activities carried on by Automata ICO Limited.