Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Dollar Index Slips, Euro Rises Amid Fed Chair’s Dovish Remarks

EditorVenkatesh Jartarkar
Published 10/20/2023, 07:09 AM
© Reuters
EUR/USD
-
GBP/USD
-
USD/JPY
-
GC
-
JGB
-
US10YT=X
-

The dollar index experienced a 0.33% decrease on Thursday, October 19, 2023, following Federal Reserve Chair Powell's indication of maintaining interest rates steady at the forthcoming Federal Open Market Committee (FOMC) meeting and his cautious stance towards additional policy firming. This decline was mitigated by the 10-year Treasury note yield reaching a 16-year peak and weak stock performance, which spurred demand for dollar liquidity.

Mixed U.S. economic news also influenced the currency market. Declines were observed in September's existing home sales, leading indicators, and Philadelphia Fed business outlook survey results. However, weekly unemployment claims decreased, suggesting a strengthening labor market.

In response to Powell's slightly dovish comments, the euro saw a 0.47% rise. Yet, the EUR/USD was negatively affected by a dip in French business confidence.

Meanwhile, the yen recovered from a two-week low against the dollar. This was driven by the Bank of Japan's quarterly report that upgraded economic assessments for six out of nine areas in Japan and a decade high in the Japanese Government Bond yield.

Precious metals prices showed inconsistency. December gold reached a 2-1/2 month high due to a weak dollar, an increase in the 10-year U.S. breakeven inflation rate, and safe-haven demand spurred by the Israeli-Hamas conflict. Conversely, December silver closed lower.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.