PT Solid Gold Berjangka | Dollar Finds Footing as Traders Turn to US Services Data

01:30 05 June in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | The dollar held steady as traders returned to riskier bets in emerging markets while waiting for Canadian interest rate decisions and U.S. services data.

The Swiss franc and yen were also beneficiaries of this sentiment, with the yen receiving an extra boost after Bloomberg News reported that it could consider cutting bond buying at a policy meeting next week.

The yen eased 0.2 percent to 155.27 in early trade in the Asian session, hopping to the euro at 168.74, the biggest gain since Japan intervened in the FX market a month ago after making a 1 percent jump to the common currency overnight.

Real wages in Japan fell for the 25th consecutive month as inflation outpaced the rise in nominal wages. The yen is the worst g10 currency this year, and on Tuesday BOJ deputy Governor Ryozo Hino said he “must be very vigilant” about the impact of currency weakness on the economy and inflation.

The Swiss Franc rose for the fourth straight session of the dollar overnight and is close to breaking its 200-day moving average at 0.8902 per dollar. Other majors eased slightly in the dollar despite lower U.S. bond yields.

The euro was stable in the Asian session at Asia1.0878 and Sterling bought they1.2770, both a little softer than they had been a day ago. The Australian dollar was a bit weaker at00.6443, but due to Australian GDP data, Westpac had forecast annual growth of just 1%, the slowest pace since 1991, excluding the pandemic year.

Australia’s top central bank has told parliament that growth in the June quarter is expected to be weak as high interest rates work to curb demand.

The market is pricing a 75 percent chance of a 25 basis point rate cut, which is the first among the G7 countries in this cycle and traders will be looking for a signal that further cuts are coming. US services ISM and partial employment data are also the cause.

Source: Reuters