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PT Solid Gold Berjangka | Dollar Tracks Treasury Yields Lower as Fed Stays on Hold

01:54 02 November in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP
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Solid Gold Berjangka | The article discusses the recent developments in the foreign exchange market and the impact of the Federal Reserve’s monetary policy decisions on the value of the U.S. dollar. Here’s a summary of the key points:

  1. The U.S. dollar experienced a broad decline on the mentioned day. This decline was attributed to a decrease in U.S. Treasury yields, which led markets to believe that the Federal Reserve had concluded its aggressive monetary policy tightening cycle, leaving interest rates unchanged.
  2. The Federal Reserve decided to maintain interest rates at their current level, as policymakers were uncertain about whether financial conditions were tight enough to control inflation. Fed Chair Jerome Powell acknowledged that rising Treasury bond yields, home mortgage rates, and financing costs driven by the market could have an impact on the economy if they persist.
  3. The decision by the Federal Reserve had a positive effect on Wall Street, and this sentiment spilled over into Asian markets, resulting in a slight boost to risk-sensitive currencies like the Australian and New Zealand dollars.
  4. The Australian dollar (Aussie) rose by 0.5% to a three-week high of $0.6426, while the New Zealand dollar (kiwi) also increased by over 0.5% to reach a two-week high of $0.58825.
  5. The U.S. dollar’s decline was also reflected in lower U.S. Treasury yields, with the two-year yield reaching a nearly two-month low and the 10-year yield falling to an over two-week low.
  6. The euro rose by 0.18% against the U.S. dollar, reaching a value of $1.0589.
  7. Market participants gained confidence that U.S. interest rates may have peaked, given a sharp contraction in U.S. manufacturing in October. However, data indicated a resilient labor market, which could prompt the Federal Reserve to maintain rates at restrictive levels for a longer period.
  8. Market pricing showed an increased probability of the Fed potentially cutting rates as early as March, with a nearly 15% chance according to the CME FedWatch tool, compared to about 10% a week prior.
  9. The Japanese yen saw some relief as the U.S. dollar weakened, but it remained on the weaker side of 150 yen per dollar. The Japanese yen last stood at 150.44 per dollar, having previously reached a one-year low of 151.74 per dollar due to the Bank of Japan’s monetary policy decision.
  10. Sterling (British pound) rose by 0.35% to $1.2192 ahead of the Bank of England’s rate decision, with expectations for the central bank to maintain current interest rates.

The article provides insight into the interplay of central bank policies, economic data, and market sentiment in influencing currency movements.

USD GBP/USD EUR/USD USD/JPY, AUD/USD,

Solid Gold Berjangka, Solid Group, PT SGB

Solid Gold Berjangka, Solid Group, PT SGB

Solid Gold Berjangka, Solid Group, PT SGB