Dollar pauses for breath after US data, eyes on French and British economies
Updates at 1200 GMT
By Kevin Buckland and Alun John
TOKYO/LONDON, Oct 11 (Reuters) -The dollar paused near a two-month high against a basket of peers on Friday, as traders digested the latest inflation and jobs data, while a rise in British economic growth could not lift the pound from one-month lows.
Moves were fairly muted across major currencies. Theeuro was down 0.06% at $1.10931, EUR=EBS the pound flat at$1.3058 GBP=D3, while the dollar was up 0.3% onthe Japanese yen at149.02JPY=EBS.
That left the dollar index at 102.95, up a touch but taking a breather after its recent steady climb that took it above 103 on Thursday, its highest since mid August on the back of traders reducing bets on further jumbo rate cuts by the Federal Reserve at its remaining meetings this year. =USD
Those expectations, now for a 25-basis-point rate cut in November and December, were not disrupted by Thursday's data.
U.S. core consumer inflation came in at 0.3% in September, slightly hotter than expected, which pointed to stalling progress in the Federal Reserve's fight against inflation, though this was tempered by high weekly jobless claims figures.
"The data yesterday from the U.S. has taken some of the upward momentum out of the dollar," Lee Hardman, senior currency analysts at MUFG, said "though in terms of the impact on Fed policy making, we think it's pretty limited. There's a lot of noise in there."
The weekly jobless claims data was skewed by Hurricane Helene. Next week's data will be impacted by Hurricane Milton.
There was plenty for markets to digest elsewhere.
Britain's economy grew in August after two consecutive months of stagnation, providing some relief to finance minister Rachel Reeves ahead of the new Labour government's first budget later this month.
However the pound was broadly steady on the dollar and little changed on the euro at 83.69 pence to the common currency. EURGBP=D3
More important for the pound is inflation and labour market data next week.
Traders are also watching French politics, after the government on Thursday delivered its 2025 budget with plans for 60 billion euros ($65.5 billion) worth of spending cuts and tax hikes on the wealthy and big companies to tackle a soaring fiscal deficit.
The budget is unlikely to pass until December, as French Prime Minister Michel Barnier and his allies in President Emmanuel Macron's camp lack a majority by a sizeable margin and will have little choice but to accept numerous concessions.
As a result, the immediate risk to the euro from French politics, Hardman said, is that ratings agency Fitch is scheduled to update its view on France's debt late on Friday, which could trigger a short term reaction.
"But I don't think it would have a sustained negative impact. For that to happen, French bonds would have to suffer a heavier sell-off and trigger a sustained lack of confidence," he added.
Markets are also awaitinga news conference from China's finance ministryon fiscal policy on Saturday. Waxing and waning in stimulus expectations have buffeted China-exposed antipodean currencies this week.
The Australian dollar was last down 0.1% on the day at $0.6734, and set for a weekly fall of 0.9%.
The New Zealand dollar NZD=D3 was at $0.6092, set for a weekly fall of more than 1%, also due to the central bank on Wednesdayslashing rates by a half point and hinting at further cuts to come.
In emerging markets, one other focus was India where the rupee weakened past 84 against the dollar for the first time, leading, traders thought, to the Indian central bank selling dollars to prop it up. INR=IN
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland; Editing by Edwina Gibbs, Kim Coghill and Andrew Heavens
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
