PT Solid Gold Berjangka | Dollar Recovers as Traders Scale Back Bets of Big Fed Rate Cut
US DOLLAR SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Investors were looking ahead to U.S. inflation data after Friday’s jobs report stirred uncertainty about the extent of the Federal Reserve’s interest rate cuts next week.
The yen weakened against the dollar after four straight days of gains. After hitting a one-month high of $141.75 on Friday, it closed 0.7% lower at ¥143.35 per dollar.Focus shifted to the U.S. inflation report to be released Wednesday as the next major indicator that could alter the market’s pricing for the September Fed meeting.
The euro was down 0.3% to $1.1048 and the pound was down 0.3% to $1.3083, the lowest in two weeks.The dollar gained 0.37% to $101.56 against the U.S. dollar.
The U.S. jobs report released on Friday failed to give traders a clear answer as to whether the Fed will cut rates by the usual 25 basis points at its September 17-18 policy meeting or by a much larger 50 basis points.Although the August employment numbers fell short of expectations, the unemployment rate declined and wage growth remained steady.
The market expects a 25 bps rate cut next week, with about a 25% chance that the rate cut will be halved. On Friday, the likelihood of a significant rate cut was as high as 50%.On Friday, Fed policymakers indicated that they are prepared to initiate a series of rate cuts, pointing to a cooling labor market.
The Japanese economy in the April-June quarter, released on Monday, slowed slightly from the initially announced pace, but had little impact on the exchange rate.
Source: Reuters