Dollar firm after Powell pushes back on aggressive easing bets
Fed Chair Powell says not 'in a hurry' to lower rates
Euro on back foot as cooling inflation backs rate cuts
Yen steadies as traders assess incoming Japanese PM
Aussie firm on Beijing stimulus as China starts week-long holiday
By Kevin Buckland
TOKYO, Oct 1 (Reuters) -The U.S. dollar gained against major peers on Tuesday after Federal Reserve Chair Jerome Powell pushed back overnight against bets on more supersized interest rate cuts.
The euro traded not far from Monday's one-week low following a drop in German inflation to the lowest since early 2021, boosting speculation about another rate reduction this month.
The yen steadied close to the middle of its range against the dollar over the past month, after a volatile two days as traders sized up Japan's incoming prime minister and his cabinet.
Australia's dollar caught its breath following its push to the highest since February of last year on Monday, buoyed by stimulus in the country's top trading partner, China.
The Fed's Powell adopted a more hawkish tone in a speech at a conference in Tennessee, saying the U.S. central bank would likely stick with quarter-percentage-point interest rate cuts moving forward. "This is not a committee that feels like it is in a hurry to cut rates quickly," he said.
Traders remain certain that the Fed will cut again at the next policy setting meeting in November, but slashed expectations for a 50 basis-point (bp) reduction to 35.4% from 53.3% a day earlier, according to CME Group's FedWatch Tool.
The Fed kicked off its easing cycle with a larger-than-expected half-point reduction last month.
Powell's speech came ahead of a heavy week of U.S. data, including the Institute for Supply Management's manufacturing index later on Tuesday and non-manufacturing report on Thursday, followed by Friday's potentially crucial monthly jobs figures.
"Powell did say that the speed with which the Fed cut rates will depend on the data, so clearly not ruling out the prospect of further 50 bps moves in future," said Ray Attrill, head of FX strategy at National Australia Bank.
"Friday's payrolls data may yet prove decisive as to which way the Fed's axe falls."
The dollar index =USD added 0.07% to 100.85 as of 0055 GMT, after pushing 0.3% higher on Monday.
It rose 0.23% to 143.95 yen JPY=EBS, after whipsawing from as high as 146.495 yen on Friday to as low as 141.65 yen on Monday.
Shigeru Ishiba, due to be confirmed as Japan's new premier later on Tuesday, is seen by markets as a monetary policy hawk, despite a recent toning down of rhetoric on the need for policy normalisation.
He won his party's leadership vote on Friday in one of the closest-ever races, and is now attempting to unify the party after calling a snap general election for Oct. 27.
The euro EUR=EBS was flat at $1.1132 after dropping as low as $1.1113 in the previous session.
Data on Monday showed inflation in Germany cooled more than expected in September to its slowest rate since February 2021. Inflation also slowed in Italy.
European Central Bank President Christine Lagarde told parliament "the latest developments strengthen our confidence that inflation will return to target in a timely manner," and this should be reflected in the Oct. 17 policy decision.
The Aussie AUD=D3 was little changed at $0.6914, after advancing to $0.69435 on Monday.
Over the weekend, China's central bank ordered lenders to lower mortgage rates by the end of October. A slew of mega-cities such as Guangzhou, Shanghai and Shenzhen also dramatically eased home-buying restrictions.
The yuan eased on Tuesday to 7.0116 per dollar in offshore trading CNH=D3, after sliding about 0.36% overnight on the prospect of further monetary easing.
China begins its Golden Week holiday from Tuesday, when onshore financial markets will be shut.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland; Editing by Jamie Freed
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
