Dollar steadied Tuesday, consolidating after its payrolls-inspired losses, with traders weighing up the potential for more Federal Reserve rate cuts along with a slowing economy.
At 04:15 ET (08:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.2% to 98.765, after falling to a one-week low earlier in the session.
Dollar steadies after payrolls hit
The greenback was hard hit after the disappointing July jobs report at the end of last week prompted traders to swiftly price in rate cuts next month.
Traders are now pricing in an over 90% chance of the Federal Reserve cutting rates in its next meeting in September, compared with 63% a week earlier, the CME FedWatch tool showed.
Goldman Sachs expects the Fed to deliver three consecutive 25 basis point cuts starting in September, with a 50 basis point move possible if the unemployment rate climbs further in the next report.
San Francisco Federal Reserve Bank President Mary Daly said on Monday that given mounting evidence the U.S. jobs market is softening and no signs of persistent tariff-driven inflation, the risks are now skewed to more than two Fed cuts this year.
In Europe, EUR/USD dropped 0.3% to 1.1544, with the single currency hurt by data showing France's services sector contracted at a faster pace in July, with political uncertainty and weak demand weighing heavily on business sentiment.
The HCOB France Services PMI fell to 48.5 in July from 49.6 in June, marking the quickest rate of decline since April. A reading below 50 indicates contraction.
Tuesday's main eurozone data release is June PPI, which is expected at 0.6% year-on-year, suggesting the European Central Bank should be more concerned about inflation undershooting its 2% target.
"EUR/USD looks quite comfortable near the 1.1550 level and, in the absence of market drivers, may hang around that level for a while. We imagine buyers would return in the 1.1500/1520 area should the U.S. data weigh on EUR/USD today," said ING.
GBP/USD fell 0.1% to 1.3277, trading in a tight range.
Elsewhere, USD/JPY traded 0.1% higher to 147.25, following some positive services purchasing managers index data for July.
AUD/USD rose 0.1% to 0.6468, while USD/CNY gained 0.1% to 7.1856 despite China's services PMI data for July reading stronger than expected.
Source: Investing.com
The U.S. currency slipped lower following a speech by Jerome Powell on Tuesday, in which the Federal Reserve chair left the door open to further rate cuts by saying the U.S. labor market remained in t...
The U.S. dollar was choppy on Tuesday, as investors attempted to gauge the longevity of a flare-up in trade tensions between the U.S. and China. U.S. President Donald Trump has appeared to rein in hi...
The US Dollar found support at the 98.80 area after retreating from the mid-range of the 99.00s on Friday, following Trump's threat to impose 100% tariffs on China. The Index pared losses on Monday bu...
The dollar weakened on Thursday (October 9th), for the first time this week; most G-10 currencies weakened on the day, with the Australian and Canadian dollars outperforming the rest. The Bloomberg D...
The US dollar strengthened on Thursday (October 9th), continuing its gains this week, driven by a weaker euro due to the political crisis in Paris and a weaker yen amid a change in the ruling party le...
US stocks rose on Wednesday, with the S&P 500 up 0.7%, the Nasdaq gaining 0.9%, and the Dow Jones advancing about 220 points, following a volatile session on Tuesday, as investors focus on a new wave of corporate updates. Bank of America...
Gold retains bullish bias amid economic risks, dovish Fed, weaker USDUS President Donald Trump threatened on Tuesday to terminate trade with China in cooking oil and other products in response to the latter's decision not to purchase US soybeans....
The U.S. currency slipped lower following a speech by Jerome Powell on Tuesday, in which the Federal Reserve chair left the door open to further rate cuts by saying the U.S. labor market remained in the doldrums. Markets are currently priced for a...
Asia-Pacific markets traded mixed Tuesday, breaking ranks with Wall Street that soared after U.S. President Donald Trump softened his stance on...
European stocks started the week in positive territory, with the STOXX 50 rising 0.9% and the STOXX 600 adding 0.6%, as traders geared up for the...
President Donald Trump arrived in the Egyptian resort of Sharm El-Sheikh on Monday for a summit with several other world leaders aimed at ensuring...
President Donald Trump's administration on Sunday signaled openness to a trade deal with China, even as tensions escalated over Beijing's new export...