Traders radically changed their expectations regarding the course of monetary policy easing by the Reserve Board Federal The American Central Bank this year.
The CME Group’s FedWatch tool showed that markets no longer expect a definitive cut in interest rates in November and place an 86 percent probability of a 25 basis point cut. Traders expect a 50 basis point cut only by December, down from more than 70 basis points just one week ago.
This has kept the dollar in a strong position, rising to a multi-week high against the euro, British pound and yen.
And he reached Dollar indexwhich measures the performance of the US currency against other major currencies, reached 102.41 points in the latest trading, which is slightly less than the highest level it reached in seven weeks at 102.69 points, which it touched on Friday.
St. Louis Federal Reserve Bank President Alberto Musalem said he supports further lowering interest rates as the economy gains strength, but noted that it is appropriate for the US central bank to be cautious and not exaggerate in easing monetary policy.
“Further gradual cuts in interest rates over time are likely to be appropriate,” he added.
This week, investors will focus on the US inflation report scheduled for release on Thursday, as well as the minutes of the Federal Reserve’s latest meeting in September, scheduled for release tomorrow, Wednesday. Chinese markets are also scheduled to open after a week-long holiday.
And rose Yuan In offshore trading slightly to 7.0594 yuan against the dollar in early trading.
And he reached euro $1.098175 in early trading, not far from the seven-week low of $1.09515 hit last week.
The price of the pound reached Sterling $1.3095, a price close to its lowest level over three weeks at $1.30595, which was recorded yesterday, Monday.
And rose Yen Slightly to 147.795 per dollar in early trading, after it also fell to a seven-week low of 149.10 per dollar yesterday, Monday, as traders pondered the interest rate path that the Bank of Japan (the central bank) is likely to take in the near term.
