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
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
