Dollar Holds Steady
London: 16 November 2023 (TraderMade): The U.S. dollar stood firm on Thursday, maintaining its position after a tumultuous two-day period marked by sharp declines and subsequent recovery. Market participants interpreted incoming economic data optimistically. They consider it an indication that the Federal Reserve may postpone interest rate cuts.
Latest updates on crucial USD pairs
The US Dollar has been fluctuating in a tighter range against other major currencies.
- The Euro/US Dollar (EURUSD) declined by 0.0018% (compared to yesterday's close) to 1.08473 (at about 8:30 AM GMT).
- Pound Sterling/ US Dollar (GBPUSD) dipped by 0.27% to 1.23826.
- US Dollar/ Japanese Yen (USDJPY) has increased by 0.017% to 151.37.
- Australian Dollar/ US Dollar (AUDUSD) saw a 0.36% decrease to 0.64855.
- New Zealand Dollar/ US Dollar (NZDUSD) also decreased by 0.64% to reach 0.59844.
Despite a strong rebound in employment, Australia's currency failed to gain traction as traders focused on the dominance of part-time labor gains and a slight increase in the jobless rate. In response to regional equity declines, the Australian and New Zealand dollars, both sensitive to risk, experienced a dip.
The dollar index, gauging the greenback against crucial currencies, rose by 0.14% to 104.47. This followed a 0.31% gain on Wednesday, rebounding from a 1.51% plunge the day before.
Support for the dollar stemmed from robust retail sales figures and further signs of a cooling inflation trend, aligning with the narrative of an impending 'soft landing' in the economy. This scenario would provide the Fed with additional time before considering rate cuts.
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