Investing.com – The US dollar slipped slightly on Thursday ahead of the release of more important labor market data, while the euro climbed slightly despite French political turmoil.
At 05:20 ET (10:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 0.1% lower at 106.180.
A dollar brings some benefits back
The dollar has given back some of its recent gains on the back of slower-than-expected monthly growth while services sector activity slowed in November after posting gains last year. a few months.
Federal Reserve Chairman Jerome Powell indicated that the US economy is now stronger than the central bank expected in September when it began cutting interest rates, suggesting a slower pace of interest rate cuts ahead. .
The market is still expecting a rate cut in December, but the weekly data later in the session and, more importantly, on Friday could help guide expectations for future rate moves.
“Weekly initial jobless claims have been staying very low lately, but tomorrow's NFP jobs data will have a bigger say in where the dollar goes next,” sources said. – analysis at ING, in a note.
The Euro is bouncing despite the French political crisis
In Europe, it climbed 0.2% to 1.0532, climbing away from the two-year low of 1.0331 hit in late November even as French Prime Minister Michel Barnier prepared to resign after lost a vote of no confidence on Wednesday.
This could lead to a delay in fiscal restraint in the second largest economy in the euro area, but the country's large budget deficit will have to be addressed at some point.
Meanwhile, data released earlier Thursday showed that German fell 1.5% in October, while it also slipped monthly, suggesting weak growth ahead.
This is expected to cut rates next week, and the market is pricing in more than 150 basis points of discount by the end of 2025.
“We remain aware that short-term resistance at 1.0550 could be a recovery point for EUR/USD and we see a case for EUR/USD moving closer to 1.0500 over the coming days,” ING said, “because there seems to have been more. $5bn of 1.0500 FX options hitting that level expires over the next week.”
trading 0.2% higher to 1.2721, helped by the UK rising higher than expected in November.
He won a ticket again
In Asia, it fell 0.2% to 150.25, slipped 0.1% to 7.2709, and gained 0.2% to 0.6440.
It rose 0.5% to 1,417.55, after the pair climbed to a two-year high on Wednesday, after South Korean President Yoon Suk-Yeol suddenly revoked martial law amid public and political fear.
South Korea's Ministry of Finance has announced a 40 trillion won ($28.35 billion) market establishment fund. The Bank of Korea can buy bonds and expand repo operations, with authorities ready to act under contingency plans if necessary.
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