Dollar eases as data leaves rate cut hopes intact; yen stronger
September US PCE inflation ticks up, as expected
Fed seen cutting policy rate by 25 bps in Nov, Dec
Yen firms after less dovish BOJ
Euro higher after the bloc's strong Oct inflation data
Updates to U.S. morning
By Saqib Iqbal Ahmed
NEW YORK, Oct 31 (Reuters) -The dollar eased broadly on Thursday after U.S. data suggested upward price pressures continue to ease, keeping Federal Reserve policymakers on track to cut short-term U.S. borrowing costs by a quarter percentage point next week.
Data on Thursday showed U.S. consumer spending increased slightly more than expected in September, putting the economy on a higher growth trajectory heading into the final three months of the year.
Inflation by the Fed's targeted measure, the year-over-year increase in the personal consumption expenditures index, was 2.1% in September, down from an upwardly revised 2.3% in August, a Commerce Department report showed. The Fed aims at 2% inflation.
"(The) U.S. economic releases confirm that the economy remains on course for a 'soft landing', with the economy continuing to make disinflationary progress back towards the FOMC's 2% price target," Michael Brown, senior research strategist at Pepperstone, said.
The Fed is likely to go ahead with cutting short-term U.S. borrowing costs by a quarter percentage point next week, traders bet on Thursday, with futures contracts settling to the Fed's policy rate putting the chances of a 25 basis point cut next week at about 94%.
The dollar also came under pressure against the yen JPY=EBS after the Bank of Japan took a less dovish tone than expected, while the euro EUR=EBS was stronger after data showed the bloc's inflation accelerated more than expected in October, bolstering the case for caution in European Central Bank interest rate cuts.
The dollar was down 0.48% against the yen at 152.68 yen and the euro was 0.3% higher against the buck at $1.088725.
"Some of the move is likely a function of yen demand after a marginally more hawkish BoJ during the Asia session, as well as some upside in the euro after hotter-than-expected CPI figures dented the chances of a 50 basis points December ECB cut," Pepperstone's Brown said.
Traders were also likely taking the opportunity to book profits after the dollar's strong run in recent weeks, Brown said.
The Dollar Index =USD, which measures the U.S. currency's strength against a basket of major peers, roseas much as 4.5% from its September lows.
Attention now turns to Friday's closely watched nonfarm payrolls report and next week's U.S. presidential election on Tuesday.
Economists polled by Reuters estimate 113,000 jobs were added in October, although the number could be lower due to recent hurricanes.
"A slightly hotter or slightly cooler (jobs) number to me probably doesn't change the dial too much given the upbeat trend in recent economic data," said IG Market Analyst Tony Sycamore.
"It makes sense to me to be ... taking some risk off and moving to the sidelines" ahead of a week that will "set the tone for the end of the year," he said.
Some investors have been putting on trades betting Republican candidate Donald Trump will win, helping to lift the dollar and U.S. Treasury yields, although he is still neck and neck with Democratic VicePresident Kamala Harris in several polls.
Trump's plans to implement tax cuts, loosenfinancial regulations and raise tariffs are seen as inflationary and could slow the Federal Reserve in its policy easing path.
On Thursday, the BOJ maintained ultra-low interest rates but said risks around the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again.
Governor Kazuo Ueda's remarks were seen as less dovish than those made before the meeting that the BOJ could "afford to spend time" scrutinising the fallout from risks such as U.S. economic uncertainties.
Elsewhere, sterling GBP=D3 fell 0.4% to $1.2905, a day after Britain's finance minister Rachel Reeves launched the biggest tax increases since 1993 in her first budget.
In cryptocurrencies, bitcoin, the world's largest cryptocurrency by market cap, was 2% lower at $71,111, less than 4% shy of its record high from March.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Saqb Iqbal Ahmed; Additional reporting by Medha Singh and Brigid Riley; Editing by Jacqueline Wong, Emelia Sithole-Matarise and Lisa Shumaker
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
