2023-11-03 21:03:00
Around 9:45 p.m., the greenback lost 1.00% once morest the single currency, to 1.0731 dollars per euro, following falling to 1.0747 dollars, the lowest since mid-September.
The dollar weakened significantly on Friday once morest most major world currencies, weakened by several poor American indicators and a violent easing of bond rates.
Around 8:45 p.m. GMT, the note lost 1.00% once morest the single currency, to 1.0731 dollars per euro, following falling to 1.0747 dollars, the lowest since mid-September.
It also lost 1.45% to the British currency, at 1.2382 dollars per pound sterling.
“The convergence of American indicators this week suggests the end of the dollar’s overperformance” on the foreign exchange market, Wells Fargo analysts wrote in a note.
After degraded regional activity indices (Dallas and Chicago) and a slowdown in the manufacturing sector, the monthly employment report showed on Friday that only 150,000 jobs had been created in October in the United States.
This is half the figure of the previous month and less than the 180,000 creations expected by economists.
In addition, the ISM index of activity in services also showed a deceleration in October.
“This tepid report on employment increases the probability of seeing the Fed (American central bank) end its tightening cycle and pivot towards rate cuts in 2024,” commented Bill Adams, of Comerica Bank.
Operators are now counting on at least four rate cuts in 2024, the first starting next May.
After an initial inflection on Thursday, bond rates slipped. The yield on 2-year US government bonds, the most representative of market expectations in terms of monetary policy, fell to 4.83%, compared to 4.98%, the lowest in two months.
“Lower bond yields and lower expectations of monetary tightening are weighing on the dollar,” noted José Torres of Interactive Brokers.
“Today the dam burst,” summarized Adam Button of ForexLive regarding the “greenback,” one of the dollar’s nicknames. “However, “I think we have already seen most of the movement.”
“The United States remains the most dynamic economy in the world” among major nations, continues the analyst. “And the Fed is still a long way from lowering rates.”
“Just look at the results of American companies,” according to Adam Button. “We don’t see much sign of consumer wait-and-see attitude.”
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