{"id":103511,"date":"2024-07-10T14:05:00","date_gmt":"2024-07-10T10:05:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=103511"},"modified":"2024-07-10T19:12:15","modified_gmt":"2024-07-10T15:12:15","slug":"dollar-hovers-near-three-week-lows-amid-powells-cautious-tone","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/dollar-hovers-near-three-week-lows-amid-powells-cautious-tone\/07\/10\/market-updates\/","title":{"rendered":"Dollar Hovers Near Three-Week Lows Amid Powell&#8217;s Cautious Tone"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The US dollar remained near three-week lows as Federal Reserve Chair Jerome Powell adopted a cautious stance during his testimony to Congress, highlighting the need for &#8220;greater confidence&#8221; in declining inflation before considering a rate cut. Powell acknowledged the cooling labor market, but the upcoming Consumer Price Index (CPI) report for June will be crucial in determining the timing of any potential rate adjustments.<\/p>\n\n\n\n<p>Key Developments:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Dollar Index:<\/strong> The dollar index remained largely unchanged at 105.09, after a slight rise on Tuesday. It had previously dipped to its lowest level since June 13 due to unexpectedly soft US payrolls data.<\/li><li><strong>Rate Cut Expectations:<\/strong> Traders currently anticipate a 73% probability of a rate cut by September, with a second reduction mostly priced in by December.<\/li><li><strong>Euro:<\/strong> The euro held steady at $1.0815, below Monday&#8217;s one-month high, as investors monitored the political situation in France following the surprise election win of the leftist alliance.<\/li><li><strong>Kiwi:<\/strong> The New Zealand dollar was the weakest performer, falling 0.9% to $0.6071, after the Reserve Bank of New Zealand (RBNZ) indicated the possibility of rate cuts if inflation slows as expected. This marked a shift from the previous meeting in May, where the RBNZ had hinted at a potential additional rate hike.<\/li><li><strong>Australian Dollar:<\/strong> The Australian dollar rose 0.5% against the New Zealand dollar, reaching NZ$1.1065 for the first time since February 2023. It remained relatively flat against the US dollar at $0.6738.<\/li><li><strong>Yen:<\/strong> The dollar gained 0.1% against the yen, reaching 161.515, as traders awaited the Bank of Japan&#8217;s (BOJ) upcoming meeting. Sources suggest the BOJ may revise down its economic growth forecast for this year but maintain an inflation projection around the 2% target, leaving the possibility of a rate hike this month open.<\/li><\/ul>\n\n\n\n<p>Overall, the currency market appears to be in a holding pattern ahead of the CPI report, which could influence investor sentiment regarding the timing of the first US rate cut. The New Zealand dollar&#8217;s weakness following the RBNZ&#8217;s dovish stance and the potential for a rate hike by the BOJ are also noteworthy developments in the currency landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US dollar remained near three-week lows as Federal Reserve Chair Jerome Powell adopted a cautious stance during his testimony to Congress, highlighting the need for &#8220;greater confidence&#8221; in declining inflation before considering a rate cut. Powell acknowledged the cooling labor market, but the upcoming Consumer Price Index (CPI) report for June will be crucial &hellip;<\/p>\n","protected":false},"author":9,"featured_media":96659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,36],"tags":[9851,10587,6909],"class_list":["post-103511","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates","tag-api-data","tag-middle-east-tensions","tag-wti"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103511","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=103511"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103511\/revisions"}],"predecessor-version":[{"id":103512,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103511\/revisions\/103512"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/96659"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=103511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=103511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=103511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}