Focus on Fed meeting Federal (The US Federal Reserve) and the size of its expected rate cut Interest.
The Federal Reserve is almost certain to cut interest rates next week, but uncertainty over whether it will cut by 25 basis points or 50 basis points has kept investors on edge and weighed on the dollar.
Christopher Wong, currency analyst at OCBC, said the data US unemployment claims The highs issued on Thursday helped revive bets on a large rate cut at the meeting. US Central Bank This month, according to Reuters.
The CME Group’s FedWatch tool showed traders seeing a 45 percent chance of a 50 basis point cut, after the rate rose steadily over the past two days.
And reduce European Central Bank Thursday prices InterestBut the bank president Christine Lagarde It lowered expectations for another cut next month, prompting euro to the upside, as it held onto those gains in early trading Friday.
In addition to the Fed, the Bank of England and the Bank of Japan hold their monetary policy meetings next week.
The euro rose 0.11 percent to $1.10863, after rising 0.57 percent yesterday, leaving the dollar index, which measures the performance of the greenback against six major currencies including the euro, at a one-week low of 101.05.
A series of mixed U.S. economic reports this week have confounded expectations for interest rates, with a report yesterday indicating that layoffs remained low even as the labor market slows, while other data showed producer prices rose slightly more than expected in August amid a rebound in the cost of services.
Changes in interest rate expectations have led to lower yields. Bonds Treasury yields fell in Asian trading hours on Friday as the yield on the benchmark 10-year U.S. Treasury note fell 3.6 basis points to 3.644 percent.
And raise that yen The yen hit its highest since Dec. 28 at 140.645 against the dollar ahead of a Bank of Japan meeting, when the central bank is likely to keep interest rates steady. The yen was last up 0.6 percent at 140.965, on track to rise 1 percent this week.
And rose Pound Sterling 0.19 percent to $1.3150 ahead of the Bank of England’s meeting next week, when markets expect it to keep interest rates on hold after cutting them by 25 basis points in August.
