Possible Fed Rate Cuts Keep Dollar Steady
London: 4 December 2023 (TraderMade): In recent developments, the US dollar faced challenges in recovering ground as investors reacted to cautious statements by Fed Reserve Chair Jerome Powell.
Powell acknowledged the anticipated impact of US monetary policy on slowing the economy, emphasizing that the overnight interest rate was "well into restrictive territory." Despite his openness to further policy tightening, market sentiment shifted, with traders increasingly convinced that the rate-hike cycle had concluded.
The focus now turns to crucial US economic data, particularly the November non-farm payrolls report scheduled for release later this week.
USD pairs latest update (@9:21 AM GMT)
The US dollar index, tracking the currency against six major counterparts, marginally rose to 103.24, maintaining proximity to Friday's closing levels. The dollar declined slightly against the yen, as USDJPY reached 146.658, while the AUDUSD decreased by 0.427% to 0.66467. The kiwi experienced a slight decline, as NZDUSD dipped by 0.349% to 0.61872 after reaching 0.6222, its highest level since late July.
GBPUSD dropped by 0.265% to 1.26765, while EURUSD slightly declined by 0.03% to 1.08779.
Looking ahead, speeches from European Central Bank (ECB) officials, including ECB President Christine Lagarde, may impact currency markets.
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