US dollar strengthens ahead of Fed rate cut move
Updates prices throughout, adds background on other currencies
By Chibuike Oguh
NEW YORK, Sept 17 (Reuters) -The U.S. dollar strengthened against most major currencies on Tuesday following better-than-expected retail sales data that seemed to support a less aggressive stance by the Federal Reserve when it delivers a much expected interest rate cut.
Commerce Department data showed on Tuesday that U.S. retail sales unexpectedly rose 0.1% in August, suggesting that the economy remained on solid footing through much of the third quarter.
The Fed's Federal Open Market Committee will give its interest rate decision at the conclusion of its meeting on Wednesday after which Chair Jerome Powell will hold a press conference.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.22%at 100.93.
Against the yen JPY=EBS, the dollar rose 0.87% to 141.775 after weakening slightly following the retail sales data.
The euro EUR=EBS hovered around $1.111550, not far from the year's high of $1.1201.
"We obviously are waiting for the FOMC. That's probably the overarching theme and we've had some moves with economic data that have come out today," said Axel Merk, president and chief investment officer at Merk Investments in Pal Alto, California.
Fed funds futures 0#FF: have rallied to push the chance of a 50 basis point rate cut to 61%, against 30% a week ago. The odds have narrowed sharply after media reports revived the prospect of a more aggressive easing. FEDWATCH
Other economic data on Wednesday appeared to provide support for the Fed to be less aggressive in cutting rates. U.S. business inventories, a key component of gross domestic product, posted a better-than-expected gain of 0.3% in July while factory output rebounded in August.
"Overall, the market is pricing in numerous rate cuts over the next several months and there are those voices that suggest that maybe the market has gotten ahead of itself," Merk added.
The Bank of Japan is expected to keep policy steady on Friday but signal that further interest rate hikes are coming, perhaps turning the next meeting in October into a live one.
The Bank of England is also expected to retain interest rates at 5% when it meets on Thursday, although markets have priced in a nearly 36% chance of another cut. 0#BOEWATCH
Sterling GBP=D3 - the best performing G10 currency this year with a 3.43% rise on the dollar - has led the charge against the dollar thanks to signs of resilience in Britain's economy and stickiness in inflation. It was last down 0.39% at $1.31635.
Chinese markets are closed for the Mid-Autumn Festival break until Wednesday, though the yuan CNH=D3 was up 0.15% at 7.1082 in offshore trade.
The Canadian dollar CAD=D3 was up 0.07% at $1.35970. The Australian AUD=D3 and New Zealand NZD=D3 dollars bought $0.67520 and $0.61840 respectively.
Currency bid prices at 17 September 04:19 p.m. GMT | |||||||
Description | RIC | Last | U.S. Close Previous Session | Pct Change | YTD Pct | High Bid | Low Bid |
Dollar index | =USD | 100.94 | 100.7 | 0.25% | -0.42% | 100.95 | 100.56 |
Euro/Dollar | EUR=EBS | 1.1116 | 1.1133 | -0.15% | 0.71% | $1.1146 | $1.1112 |
Dollar/Yen | JPY=D3 | 141.84 | 140.59 | 0.79% | 0.46% | 141.84 | 140.36 |
Euro/Yen | EURJPY= | 1.1116 | 156.53 | 0.73% | 1.31% | 157.87 | 156.06 |
Dollar/Swiss | CHF=EBS | 0.8467 | 0.8449 | 0.22% | 0.61% | 0.8478 | 0.843 |
Sterling/Dollar | GBP=D3 | 1.3154 | 1.3216 | -0.44% | 3.39% | $1.3229 | $1.3154 |
Dollar/Canadian | CAD=D3 | 1.3599 | 1.3587 | 0.1% | 2.6% | 1.3617 | 1.3581 |
Aussie/Dollar | AUD=D3 | 0.675 | 0.6752 | 0.01% | -0.96% | $0.6769 | $0.6742 |
Euro/Swiss | EURCHF= | 0.9412 | 0.9403 | 0.1% | 1.35% | 0.9422 | 0.9383 |
Euro/Sterling | EURGBP= | 0.8449 | 0.8423 | 0.31% | -2.53% | 0.845 | 0.8419 |
NZ Dollar/Dollar | NZD=D3 | 0.6178 | 0.6201 | -0.34% | -2.2% | $0.6211 | 0.6179 |
Dollar/Norway | NOK= | 10.5976 | 10.5865 | 0.11% | 4.57% | 10.623 | 10.5601 |
Euro/Norway | EURNOK= | 11.781 | 11.786 | -0.04% | 4.96% | 11.8099 | 11.7553 |
Dollar/Sweden | SEK= | 10.1921 | 10.1687 | 0.23% | 1.24% | 10.2075 | 10.1504 |
Euro/Sweden | EURSEK= | 11.3305 | 11.322 | 0.08% | 1.84% | 11.3465 | 11.306 |
World FX rates https://tmsnrt.rs/2RBWI5E
Dollar steady before Fed decision https://reut.rs/4eo7fLO
Reporting by Chibuike Oguh in New York; additional reporting by Tom Westbrook and Linda Pasquini in London; Editing by Andrea Ricci, Alexandra Hudson
Gerelateerde activa
Laatste nieuws
Disclaimer: De entiteiten van de XM Group bieden diensten en toegang tot ons online handelsplatform op basis van uitsluitend-uitvoering, waardoor een persoon de beschikbare content op of via de website kan bekijken en/of gebruiken, zonder dat dit is bedoeld voor wijziging of uitbreiding. Dergelijk(e) toegang en gebruik vallen onder: (i) de algemene voorwaarden; (ii) risicowaarschuwingen; en de (iii) volledige disclaimer. Dergelijke content wordt daarom alleen aangeboden als algemene informatie. Wees u er daarnaast vooral van bewust dat de inhoud op ons online handelsplatform geen verzoek of aanbieding omvat om transacties op de financiële markten uit te voeren. Het beleggen op welke financiële markt dan ook vormt een aanzienlijk risico voor uw vermogen.
Alle materialen die op ons online handelsplatform worden gepubliceerd zijn bedoeld voor educatieve/informatieve doeleinden en omvatten geen – en moeten niet worden beschouwd als het bevatten van – financieel, vermogensbelastings- of handelsadvies en aanbevelingen, of een overzicht van onze handelsprijzen, of een aanbod of aanvraag van een transactie in financiële instrumenten of ongevraagde financiële promoties voor u.
Alle content van derden, alsmede content die is voorbereid door XM, zoals opinies, nieuws, onderzoeken, analyses, prijzen en andere informatie of koppelingen naar externe websites op deze website worden aangeboden op een 'zoals-ze-zijn'-basis, als algemene marktcommentaren, en vormen geen beleggingsadvies. Voor zover dat content wordt beschouwd als beleggingsonderzoek, moet u zich ervan bewust zijn en accepteren dat de content niet bedoeld was en niet is voorbereid in overeenstemming met de wettelijke vereisten die zijn opgesteld om de onafhankelijkheid van beleggingsonderzoek te bevorderen en als zodanig onder de geldende wetgeving en richtlijnen moet worden beschouwd als marketingcommunicatie. Zorg ervoor dat u onze Mededeling over niet-onafhankelijk beleggingsonderzoek en risicowaarschuwing in verband met de voorgaande informatie doorneemt en begrijpt; die kunt u hier lezen.
