PT Solid Gold Berjangka | Dollar Firms as Commodities Slide and Carry Unwinds
DOLLAR Currency Yen PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Commodity currencies on Wednesday hit multi-week lows tracking weak demand in China, while the yen rallied sharply as short sellers held back ahead of a central bank meeting.Later in the day in Europe, the purchasing managers’ index (PMI) will be particularly closely watched to see if it supports the view that two more European interest rate cuts will be implemented by the end of January.
The euro held $1.0848 in Asian markets, while the pound bought $1.2901, which could rise if the U.K. PMI comes out higher and interest rate cut speculation recedes.Markets are pricing in a 44% chance that Japan will raise interest rates by 10 basis points next week, and speculators are changing hands on profitable “carry trades” that were funded in yen after several reports of alleged currency intervention by Japan.
The dollar/yen fell nearly 1% overnight to 155.55 and was trading at 155.78 in early Asian hours.The Aussie dollar hit a five-week low just below $0.6612 in early trading Wednesday. The New Zealand dollar hovered near Tuesday’s two-and-a-half-month low of $0.5951.
The U.S. dollar index was near a two-week high of 104.5. The Chinese yuan was steady at $7.2909 in offshore trading.Traders are waiting for the US GDP and core PCE data to be released later in the week to validate the view that two US interest rate cuts will take place this year. Next week’s Australian Q2 inflation data will be crucial in assessing the risk of another rate hike.
Source Reuters