PT Solid Gold Berjangka | Dollar edges higher ahead of key economic data, including payrolls
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Solid Gold Berjangka | It seems that the U.S. dollar has seen some recovery in early European trade, rebounding slightly from a five-month low it reached after a 2% slide in 2023. The movement in the dollar is influenced by expectations regarding the Federal Reserve’s monetary policy. The CME’s Fedwatch tool indicates that traders are pricing in a 70% chance for a 25 basis point rate cut in March 2024.
In terms of specific currency pairs:
- EUR/USD traded slightly lower at 1.1031, moving away from the previous week’s five-month peak of 1.1139. Manufacturing PMI data in Europe confirmed the sector remaining in contraction territory.
- GBP/USD rose 0.2% to 1.2751. The British pound had its strongest performance in 2023 since 2017, gaining 5%. However, data from the British Retail Consortium showed a decrease in U.K. food prices in December, potentially adding to expectations of a Bank of England interest rate cut in 2024.
- USD/JPY traded 0.5% higher at 141.55, even with Japanese markets closed for a week-long holiday. The increase may be linked to the impact of a devastating earthquake in central Japan on market sentiment.
It’s important to note that currency markets are influenced by various factors, including economic data, central bank policies, and geopolitical events, and can be subject to rapid changes. Traders often closely monitor key economic data releases to gain insights into the potential direction of currency movements.