Dollar hits 10-week high against yen as Fed bets ebb ahead of CPI
Updates at 0830 GMT
By Kevin Buckland and Harry Robertson
TOKYO/LONDON, Oct 10 (Reuters) -The U.S. dollar rose to a 10-week peak against the yen on Thursday as markets grew more confident about a patient approach by the Federal Reserve to further monetary easing, even as a key inflation report loomed later in the day.
The dollar index =USD, which measures the currency against six key rivals including the yen, stuck close to an almost two-month top touched overnight, as traders further pared bets for U.S. rate cuts this year after last week's unexpectedly strong payrolls data.
The U.S. currency touched 149.54 yen for the first time since Aug. 2. JPY=EBS, although it was last down 0.1% at 149.11yen. Meanwhile, the euro EUR=EBS languished near its lowest since Aug. 13 against the dollar, flat on the day at $1.0935.
September's consumer price index (CPI), due at 1230 GMT, is likely to show core U.S. inflation holding steady at a 3.2% year-on-year clip, economists polled by Reuters said.
Minutes from the Fed's latest meeting, released overnight, confirmed the central bank's focus on keeping the labour market healthy.
"The argument for a more gradualist approach is now definitely the central position," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
"The market's momentum is towards reconsidering how much the Fed will really cut in the coming months. I think that momentum can build, because the U.S. data flow has been relatively good recently."
San Francisco Fed President Mary Daly said late on Wednesday that she was less concerned now about resurgent inflation than about hurting the labourmarket.
Traders lay 85% odds on the Fed cutting rates by 25 basis points at its next policy decision on Nov. 7, and a 15% probability of no change, the CME Group's FedWatch Tool showed.
A week earlier, markets saw a cut as certain,with 35% odds on another half-point reduction.
The dollar index was little changed at 102.93 by 0830GMT, around the highest since the middle of August.
"There is a limit to how much more pricing for interest rate cuts can be removed without strong guidance by senior Federal Open Market Committee (FOMC) officials," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia, who forecasts 50 basis points of cuts over the year's two remaining Fed meetings.
The risk-sensitive Australian dollar AUD=D3 was up0.11%to $0.6726. It earlier rose more than 0.3% on the back ofan equity rally in top trading partner China as the East Asian nation's central bank launched a swap programme aimed at supporting the stock market.
China's finance ministry is due to hold a highly anticipated news conference on fiscal policy on Saturday.
The Aussie dropped to its weakest since Sept. 16 at $0.6708 on Wednesday, after a stimulus announcement by China's state planner fell flat.
RBC's Tan said he expects China to announce fiscal stimulus on Saturday that should be "enough to create a floor for China’s economy".
He said the stimulus is likely to support China's yuan CNY=CFXS, which has fallen in recent days, and boost other Asian currencies such as the Singapore dollar and the Indonesian rupiah.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland and Harry Robertson; Editing by Shri Navaratnam, Clarence Fernandez and Sharon Singleton
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
