NEW YORK/LONDON, May 13 - The dollar slid versus most major currencies on Monday amid expectations key U.S. data this week will show a slowing pace of inflation and consumer spending at a time of recovering European economies that also could be bolstered by interest rate cuts.
Expectations for"this week's data are softer CPI, softer retail sales and softer industrial production. These things should weigh on the dollar because it helps reaffirm the cap on interest rates," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. While the market expects inflation to decelerate, Fed Vice Chairman Phillip Jefferson said on Monday that until it's clear price pressures are moderating, he supports holding rates steady.Markets are pricing in around an 80% chance of a rate cut by the Fed's September meeting, with almost 44 basis points of reductions in total expected in 2024, LSEG data shows.
The dollar index , which measures the U.S. currency against a basket of six peers, fell 0.24% to 105.08, while the euro was up 0.33% at $1.0804. Sterling was up 0.31% at $1.2625 before labour market data on Tuesday. The yen was briefly supported when the Bank of Japan sent a hawkish signal by cutting its offer amount for a segment of Japanese government bonds in the Asian morning.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »