Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Robert Linkesch
Jan 04, 2023 11:54AM ET
USD 1,05 🗽
1
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Decode the market's secrets! | Tuesday, May 30, 2023 | 01:00PM EDT Enroll Now
Dollar hands back gains ahead of release of Federal Reserve minutes
Published Jan 04, 2023 03:29AM ET
© Reuters.
By Peter Nurse
Investing.com - The U.S. dollar weakened Wednesday, handing back some of the previous session's outsized gains, with traders looking for fresh clues on future U.S. monetary policy from the minutes of the Federal Reserve's December meeting.
At 02:55 ET (07:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, fell 0.7% to 103.638.
The dollar index climbed 1% on Tuesday as sentiment was dented by a warning from the International Monetary Fund about a likely global recession in 2023, given economic slowdowns in the main growth-driving regions of the U.S., Europe, and China.
However, this dollar strength seems to have run out of steam, with markets now awaiting the release of the Federal Reserve's meeting minutes from December later in the session.
The Fed hiked interest rates by 50 basis points in December, a slower pace than the four previous meetings, and these minutes could help shed light on what policymakers are thinking heading into the first meeting of the year in February.
This week also features data on jobs, including the official monthly jobs report on Friday. Ahead of that, the JOLTs report on job openings for November is due later Wednesday and is expected to show 10 million openings, which would be a downtick from the prior month.
EUR/USD rose 0.6% to 1.0614, after activity in the Spanish services sector expanded for the second consecutive month in December, while French inflation unexpectedly fell in December, dropping to 6.7% during the month, down from 7.1% in November. Economists had predicted the figure would climb slightly to 7.2%.
USD/JPY fell 0.7% to 130.07, with the yen showing some strength despite data showing that Japanese manufacturing activity contracted for a second consecutive month, weighed by runaway inflation and weak international demand.
GBP/USD rose 0.9% to 1.2075, with sterling rebounding after having skidded 0.7% lower overnight. The risk-sensitive AUD/USD soared 2.1% to 0.6871, while USD/CNY fell 0.5% to 6.8811, bouncing despite the country struggling with a massive spike in infections after it relaxed several anti-COVID restrictions in December.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.