TOKYO (Reuters) – U.S. job opportunities fell in March, a day before the Federal Reserve is expected to raise interest rates by another 25 basis points, on Tuesday after data showed U.S. job opportunities fell. the dollar fell.
US job openings fell for the third month in a row, while layoffs rose to their highest level in more than two years. This suggests a softening labor market that could help the Fed fight inflation.
The US Department of Commerce also said factory orders rose 0.9% in March, below expectations for a 1.1% increase.
The data will help investors determine whether the Fed is likely to pause rate hikes as it concludes its two-day meeting on Wednesday, or whether further rate hikes are possible if inflation remains high. You get it when you try
“Whether the Fed is signaling that policy is restrictive enough, or providing enough hints for the market to think that further tightening of policy is not necessary,” said Edward Moya, senior market analyst at OANDA. The big question is what you are doing,” he said. yoke.
The dollar index fell 0.22% to 101.93 after reaching 102.40, its highest since April 11th.
The single currency fell after euro zone banks turned off the credit tap and data showed key inflation indicators were finally lower, with a smaller reading by the European Central Bank on Thursday. It boosted the possibility of rate hikes.
The ECB is seen as likely to hike rates by 50 basis points this week. The single currency has risen since mid-March on expectations that interest rate differentials with the US dollar will continue to narrow.
“The projected U.S. futures rate advantage over the euro is the lowest in a decade,” Steve Englander, head of global G10 FX research and North American macro strategy at Standard Chartered Bank, said in a report. He also said, “Eurozone stocks are experiencing the longest outperformance against U.S. equities in the last decade.”
The Australian dollar rose 0.51% to $0.6664, reaching a high of $0.6717 since April 21st.
The Reserve Bank of Australia (RBA) unexpectedly raised the cash rate to 3.85% after saying further tightening may be needed to ensure inflation returns to target in a reasonable timeframe. The currency surged against the dollar.
“The RBA seems to think we need a four before the cash rate,” said Ray Attrill, head of currency strategy at National Australia Bank.
“Certainly, the data flow since April has been bullish,” he added. “I don’t know yet if it will be in June, but it is very likely that the next event will come.”
The yen has strengthened after last week’s decision by the Bank of Japan to keep interest rates ultra-low, reversing earlier losses.
The dollar fell 0.56% to ¥136.67 after reaching ¥137.78, its highest since March 8.
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Bid price for currency at 3pm (1900 GMT)
Reporting by Kevin Buckland Editing by Sri Navaratnam
Our criteria: Thomson Reuters Trust Principles.
