Connect with us

Hi, what are you looking for?

Forex

Dollar Falls in Payrolls Wake; Fed Minutes Seen Key By Investing.com

Dollar Up, Investors Digest Mixed Fed Comments on Inflation


© Reuters.

By Peter Nurse

Investing.com – The dollar sold off in early European trade Tuesday, continuing its post nonfarm payrolls weakness, while both the Australian and New Zealand dollars strengthened amid signs that these economies are recovering strongly. 

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% lower at 92.028,.

was down 0.1% at 110.81, rose 0.3% to 1.1893, while rose 0.3% to 1.3893, benefiting from U.K. Prime Minister Boris Johnson announcing on Monday that all Covid restrictions are expected to be lifted in England in two weeks’ time.

The dollar has been dropping since Friday’s , as although the release was upbeat, in that 850,000 jobs were added in June, it wasn’t sufficiently strong to push the Federal Reserve into tapering its asset buying anytime soon.

U.S. interest rate markets slightly softened their stance on early Fed tightening as a result of the jobs data, and that tone is likely to continue until Wednesday’s release of the minutes of the Fed’s June meeting. This was the meeting where officials brought forward their expectations of when interest rates will be raised to 2023.

Elsewhere, rose 0.8% at 0.7590 after the announced a pared-back extension of its quantitative easing program, while stating that it expects to keep interest rates at a record low until 2024.

“The bond purchase program is playing an important role in supporting the Australian economy,” Governor Philip Lowe said. “The bank will continue to purchase bonds given that we remain some distance from the inflation and employment objectives. However, the board is responding to the stronger-than-expected economic recovery and the improved outlook by adjusting the weekly amount purchased.”

Additionally, rose 1.1% to 0.7099 after a survey by the New Zealand Institute of Economic Research published Tuesday showed more companies expect an improved business climate, bringing forward expectations of the country’s first interest rate hike to the end of this year.

Elsewhere a sharp rise in oil prices after the group of top producers failed to come up with an agreement to increase output levels lent support to currencies linked to the price of crude, with down 0.4% at 8.5383 and down 0.3% at 1.2306.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...