By Chibuike Oguh and Alun John
NEW YORK/LONDON (Reuters) -The U.S. dollar was flat against major currencies on Friday as markets digested a raft of economic data supporting the Federal Reserve’s current monetary policy stance.
A gauge of U.S. producer prices remained unchanged in September, the Labor Department reported. The latest economic data indicates that the Fed is likely to cut rates again next month.
According to data released Thursday, consumer prices rose 0.3% in September, slightly warmer than expected, while weekly jobless claims rose sharply, indicating weakness in the labor market. Weekly unemployment benefits data has been distorted by Hurricane Helene. Next week’s data will be affected by Hurricane Milton, the second hurricane in two weeks to hit the southeastern US
The euro was steady at $1.1093, the pound rose 0.08% to $1.3072, while the dollar rose 0.35% against the Japanese yen at 149.12.
The price was flat at 102.91, taking a breather after a recent steady climb that took it above 103 on Thursday, its highest level since mid-August, thanks to support from traders who are betting on further cuts in the jumbo rate by the Federal Reserve cut during the remaining meetings. this year.
According to the CME’s Fedwatch tool, markets are anticipating a nearly 91% chance of a 25 basis point cut at the Fed’s next meeting and a 9% chance of a zero cut.
“That slightly higher inflation has really kept the market from being too aggressive about how deep they were looking for rate cuts towards the end of the year,” said Amarjit Sahota, executive director of Klarity FX in San Francisco. . “So the price was already too high and it has in principle been settled this week.”
The British economy grew in August after two consecutive months of stagnation, providing some relief for Chancellor of the Exchequer Rachel Reeves ahead of the new Labor government’s first budget later this month.
However, apart from being broadly stable against the dollar, the pound was little changed against the euro at 83.67 pence against the common currency.
Traders are also keeping an eye on French politics after the government presented its 2025 budget on Thursday with plans for 60 billion euros in spending cuts and tax hikes for rich and big companies to tackle the rising budget deficit.
The budget is unlikely to be approved before December as French Prime Minister Michel Barnier and his allies in President Emmanuel Macron’s camp lack a significant majority and will have little choice but to accept numerous concessions.
Markets are also awaiting a Chinese Finance Ministry press conference on fiscal policy on Saturday. The 0.22% rose against the dollar to 7.067 per dollar.
The Australian dollar strengthened 0.22% against the greenback to $0.6753, while the New Zealand dollar was trading at $0.611 after the central bank cut interest rates by half a point on Wednesday and hinted at further cuts.
In cryptocurrencies, bitcoin gained 5.38% to $62,930.00. rose 3.8% to $2,456.70.
“The market is happy because there is nothing that really contradicts the narrative that the Fed is cutting back; the only debate is how quickly they will cut,” said Steven Englander, head of Global G10 FX Research at Standard Chartered (OTC). 🙂 in New York.
“Overall, the data was somewhat encouraging for that story, and none of the data was discouraging for the Fed cutting rates story.”
Currency bid prices on October 11 7:51 PM
GMT
Description RIC Last US Close Previous session Pct Change YTD Pct High bid Low bid
Dollar index 102.91 102.89 0.02% 1.52% 102.99 102.76
Euro/dollar 1.0935 1.0938 -0.02% -0.93% $1.0953 $1.0927
Dollar/yen 149.13 148.58 0.36% 5.72% 149.28 148.51
Euro/yen 1.0935 162.48 0.37% 4.79% 163.4 162.32
Dollar/Swiss 0.8572 0.8563 0.11% 1.86% 0.8585 0.856
Sterling/dollar 1.3068 1.3061 0.08% 2.72% $1.3082 $1.3042
Dollar/Canadian 1.3759 1.3742 0.13% 3.8% 1.3785 1.3726
Aussie/Dollar 0.6753 0.6742 0.19% -0.93% $0.6759 $0.6726
Euro/Swiss 0.9374 0.9364 0.11% 0.95% 0.9387 0.9363
Euro/British Pound 0.8367 0.8373 -0.07% -3.47% 0.8383 0.8365
New Zealand dollar/dollar 0.611 0.6095 0.27% -3.29% $0.6119 0.6072
Dollar/Norway 10.6961 10.7222 -0.24% 5.54% 10.7637 10.6837
Euro/Norway 11.6971 11.7412 -0.38% 4.22% 11.772 11.694
Dollar/Sweden 10.3693 10.3744 -0.05% 3% 10.4157 10.355
Euro/Sweden 11.3402 11.3617 -0.19% 1.93% 11.3883 11.3336
