Written by Hannah Lang, Amanda Cooper
Washington/London, December 5 (Reuters) – The U.S. dollar hovered near a one-week high against a basket of currencies on Tuesday after new jobs data showed U.S. job openings fell to the lowest level since early 2021 in October. .
The number of job openings, an indicator of labor demand, fell by 617,000 to 8,733,000 as of the end of October, the Labor Department announced in Tuesday’s monthly job openings and turnover survey (JOLTS) report. did. less than expected.
A slowing labor market and subdued inflation are increasing optimism that the U.S. Federal Reserve will likely finish raising interest rates this cycle, with financial markets betting on even a rate cut in mid-2024. It is expected.
“The Fed is still trying to convince the market that they can still raise rates,” said Joseph Trevisani, senior analyst at FXStreet.com. “I think the market thinks it’s all over, but I think the fact that the Fed is willing to continue on this issue is giving everyone pause,” he said.
dollar index = USD It last rose 0.12% to 103.73, its highest level in about a week. Analysts said the dollar’s modest rise was in part a rebound from a sharp decline in recent weeks, with the dollar index down 3% in November alone, its steepest monthly decline in a year. He said it had become.
Elsewhere, the yuan held firm despite Moody’s downgrade of China’s credit rating outlook as major state-owned banks intervened to prevent China from lowering its credit rating. sell dollars.
Bitcoin BTC=BTSP The price remained close to its highest level since April last year.upper $42,000.
The price of the cut is
Traders are pricing in at least 125 basis points (bps) of Federal Reserve interest rate cuts next year, with 50 bps likely by June, according to CME’s FedWatch tool.
“The main focus of the market right now is still what the central bank will do next year on the policy front. There has been a very dramatic dovish reassessment of the Fed and its rate expectations.” [European Central Bank] There has certainly been an impact on currency markets over the past week,” said Lee Hardman, currency strategist at MUFG.
Investors believe the ECB could implement its first interest rate cut by March next year. Eurozone-wide inflation is falling faster than most expected, as evidenced by last Thursday’s consumer price data.
The renminbi remained strong after Moody’s decision to cut interest rates in China. credit outlook The currency turned negative on Tuesday, two people familiar with the matter said, partly due to state-owned banks exchanging yuan for U.S. dollars in the onshore swap market and selling the dollars in the spot market.
sterling GBP=D3 There was little change in $1.262, down 0.13%the yen is stable and the dollar is 146.91.
australian dollar Australian dollar=D3 Fell 0.82% up to $0.65645below Monday’s four-month high after the Reserve Bank of Australia (RBA) retention rate It hit a 12-year high of 4.35% on Tuesday.
Bitcoin is a cryptocurrency up 0.55% on $42,214, That’s just below Monday’s high of $42,404. the best From April 2022 onwards.
The world’s largest cryptocurrency has risen 150% this year, in part on optimism that U.S. regulators will lift restrictions soon. approve Spot Bitcoin Fund (ETF) traded on an exchange.
world exchange rates https://tmsnrt.rs/2RBWI5E
(Reporting by Hannah Lang in Washington and Amanda Cooper in London; Additional reporting by Lei Wee in Singapore; Editing by Frances Kelly and Bernadette Bohm)
((Hannah.lang@thomsonreuters.com))
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