Dollar gives up a bit of post-election surge; central bank decisions awaited
Updates with prices as of 0606 GMT
By Brigid Riley
TOKYO, Nov 7 (Reuters) -The dollar edged lower on Thursday after hitting a four-month high following Republican Donald Trump's win in the U.S. presidential election, while investors awaited policy decisions from the Federal Reserve and other central banks.
The Fed is expected to cut interest rates by 25 basis points later in the day, and the market's focus will be on any clues suggesting the U.S. central bank could skip a cut in December.
Last week's October jobs report came in weaker than expected, raising questions over the degree of softness in the labour market, though this data was clouded by the impact of recent hurricanes and labour strikes.
Trump's victory was also fuelling speculation that the Fed might reduce rates at a slower and shallower pace, as his policies on restricting illegal immigration and enacting new tariffs could boost inflation.
U.S. equities at record highs and a weaker yen appeared to be an "endorsement for Trump," but a stronger dollar and higher U.S. Treasury yields indicated markets were pricing in a less dovish Fed going forward, said senior market analyst Matt Simpson at City Index.
U.S. Treasuries fell sharply on Wednesday, propelling yields to multi-month highs.US/
Markets now see about a 67% chance the Fed will also cut rates next month, down from 77% on Tuesday, according to the CME Group's Fed Watch Tool.
The dollar index =USD, which measures the greenback against six major peers, dropped 0.16% to 104.94 after surging to its highest since July 3 at 105.44 and locking in its biggest single-day gains since September 2022 in the previous session.
The euro EUR=EBS rose 0.11% to $1.0742, having tumbled as low as $1.068275 for the first time since July 27 on Wednesday. Sterling GBP=D3 climbed 0.37% to $1.2927.
Ahead of the Fed, the Bank of England is likely to cut interest rates for the second time since 2020 but the big question for investors is whether it sends a signal about subsequent moves after the government's inflation-raising budget.
The Riksbank is seen easing by 50 basis points, and the Norges Bank is set to stay on hold.
The yen fell against the greenback to a three-month low of 154.715 - a decline that had Japan's top currency diplomat Atsushi Mimura flagging readiness to act, marking the government's strongest warning to speculators in recent months.
If markets begin to expect fewer Fed rate cuts as well as a "Red Sweep" in Washington, the dollar/yen has room to rise above 155, said Nomura Securities currency strategist Jin Moteki.
Verbal warnings from Tokyo, however, will likely "limit the upside of dollar/yen in the short-term," he added.
The Japanese currency was last 0.36% higher at 154.09 per dollar JPY=EBS.
The yuan edged higher after China's exports blew past forecasts, after earlier declining to its lowest in nearly three-months.
Offshore yuan traded at 7.1907 yuan per dollar CNH=D3, up about 0.20%.
The Aussie AUD=D3 also got a boost from the trade data, rising 0.72% to $0.6618, while the kiwi traded at $0.59835 NZD=D3, up 0.75%
Bitcoin BTC= was down 1.6% around $74,766 after hitting a record high on Wednesday of $76,499.99. Ether ETH= rallied more than 6% on Thursday to $2,881.16, its highest since early August.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Brigid Riley; Editing by Sam Holmes and Edwina Gibbs
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.
