US Dollar Mixed on Powell’s Rate Cut Signal
The US dollar was mixed against its major trading partners early Monday as markets now turn their attention to the usual end-of-month data releases before the long holiday weekend.
The dollar strengthened against the euro and pound, but the greenback dropped against the yen and Canadian dollar in the foreign exchange market on Monday.
Analysts said last week the market seems to be in the mood to sell US dollars as the index wobble in the past week. Fuel for that dollar selling could be some benchmark revisions to US job numbers, FX strategists said.
With the latest information on rate cut, the dollar index (DXY) – which measures the currency against a basket of six major peers – edged up to 100.82, coming off the 13-month low of 100.60 reached at the end of last week.
Trading activity was expected to be lighter than usual, with UK markets closed for a public holiday. A quick summary of foreign exchange activity heading into Monday that USDEUR fell to 1.1171 from 1.1188 at the Friday US close but was well above a level of 1.1115 at the same time Friday morning.
There are no Eurozone data on Monday’s schedule. The next European Central Bank meeting is scheduled for Sept. 12.
GBPUSD fell to 1.3195 from 1.3209 at the Friday US close but remained above a level of 1.3124 at the same time Friday morning. Monday is a holiday in the UK, so there are no data on the schedule. The next Bank of England meeting is scheduled for Sept. 19.
USDJPY fell to 144.0241 from 144.2761 at the Friday US close and 146.0612 at the same time Friday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for Sept. 19-20.
USDCAD fell to 1.3501 from 1.3512 at the Friday US close and 1.3587 at the same time Friday morning. Canadian wholesale sales data for July are set to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for Sept. 4.
US Fed Reserve Chairman Jerome Powell signaled his intention to slash fed rates in September after staying hawkish for longer than expected in order to anchor the inflation rate and grow employment data. #US Dollar Mixed on Powell’s Rate Cut Signal
