Home Forex News Dollar down as Fed minutes, U.S. data weighs

Dollar down as Fed minutes, U.S. data weighs

by

Dollar down as U.S. data weighs; traders await Fed minutes By Reuters

Breaking News

‘;

Forex 1 hour ago (Nov 23, 2022 10:42AM ET)

(C) Reuters. FILE PHOTO: U.S. Dollar banknotes are seen in this illustration picture taken June 14, 2022. REUTERS/Florence Lo/Illustration

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – The U.S. dollar fell across the board on Wednesday, after data showed U.S. business activity weakened further in November and as traders remained on edge ahead of the impending release of minutes from the Federal Reserve’s November meeting.

“Fed minutes will be the focus for today,” said Brad Bechtel, global head of FX at Jefferies.

“This is the meeting where Powell had a relatively hawkish press conference in which he indicated that if there had been an SEP (Summary of Economic Projections) at this meeting they would have definitely come out with a higher terminal rate. So the meeting minutes are likely to get into detail around this concept and therefore come with a hawkish bent,” Bechtel said.

After a headlong rush this year to raise interest rates, the Fed switched this month to a more nuanced approach that was seen as a compromise between officials most concerned about high inflation and others worried that more large rises in borrowing costs might crater the economy or stress key markets.

The minutes of the Nov. 1-2 policy meeting, scheduled to be released later on Wednesday, may show just how deep any emerging disagreement has begun to run at the U.S. central bank as it ends the push to “front-load” rate increases and begins feeling the way in smaller steps to an eventual stopping point.

The euro rose 0.6% against the dollar to $1.0362, on pace for a second straight session of gains.

U.S. business activity contracted for a fifth straight month in November, with a measure of new orders dropping to its lowest level in 2-1/2 years as higher interest rates slowed demand.

Other data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week, even though labor market conditions remain tight.

The dollar has rallied against every major currency this year, boosted by the Federal Reserve’s supersized interest rate hikes as it battles inflation. But recent cooler-than-expected U.S. consumer price data has spurred investors’ hopes that the Fed may be in a position to moderate its pace of hikes.

Against the yen, the dollar slipped 0.8% to 140.155 yen.

Sterling shot higher on Wednesday, rising for a second straight day against a faltering U.S. dollar after preliminary British economic activity data beat expectations, though it still showed contraction was underway.

The pound was last up 1.14$ at $1.2018.

The New Zealand dollar hit a three-month high, after the country’s central bank lifted interest rates by a record amount despite warning the economy might spend an entire year in recession.

The kiwi was up 1.1% on the day at $0.6221.

The Reserve Bank of New Zealand raised its benchmark rate by 75 basis points to 4.25% – the highest of any G10 economy – and said it may need to increase faster than previously indicated.

Cryptocurrencies, which has come under intense selling following the high profile collapse of crypto exchange FTX, remained choppy, with bitcoin up 1.7% at $16,471.

Dollar down as U.S. data weighs; traders await Fed minutes

Russian rouble firms ahead of three OFZ bond auctionsBy Reuters – Nov 23, 2022

MOSCOW (Reuters) – The Russian rouble strengthened on Wednesday ahead of three OFZ treasury bond auctions by the finance ministry, as the market awaited information on a price cap…

Dollar edges lower; Fed minutes, PMI readings in focusBy Investing.com – Nov 23, 2022

By Peter Nurse
Investing.com – The U.S. dollar weakened in early European trade Wednesday, retreating ahead of the release of the minutes from the latest Federal Reserve meeting…

Asia FX muted amid China jitters, Kiwi boosted by record RBNZ hikeBy Investing.com – Nov 22, 2022

By Ambar Warrick
Investing.com– Most Asian currencies moved little on Wednesday as rising COVID-19 cases in China and the introduction of new curbs weighed on sentiment, while…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News