Shares Steady, Dollar Slips as Markets Pare Fed Rate Risks
FedWatch now puts a September rate hike at 30%, down from about 50% a week earlier, as soft retail sales and sentiment data pressure the dollar.
- On Aug 17, the dollar fell to its lowest level since June as soft U.S. economic data reduced Federal Reserve rate hike expectations. Markets now price a hike at 30 per cent, down sharply from about 50 per cent a week earlier, according to the CME Group's FedWatch tool.
- Retail sales posted the first decline in nine months in July, while consumer sentiment soured by more than expected. These readings, combined with soft inflation data, prompted markets to reduce bets for an imminent Federal Reserve rate hike.
- In bond markets, the two-year Treasury yield eased two basis points to 4.154 per cent, touching a seven-week low. Ten-year yields similarly slipped two basis points to 4.680 per cent after mixed performance last week.
- The Australian and New Zealand dollars reached 10-week peaks at $0.7105 and $0.5910, while the European currency hit a two-month high of $1.1588. Gold bounced 0.43 per cent to $4,394 an ounce amid the broader market shift.
- Investors now focus on Purchasing Managers PMIs this week to gauge whether mid-year business activity acceleration can be sustained. Earnings from Home Depot, Target, and Walmart will provide critical insight into consumer strength.
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19 Articles
Dollar feeble as rate hike bets dwindle, Iran war worries grow
By Ankur Banerjee SINGAPORE, Aug 18 (Reuters) - The U.S. dollar held near multi-month lows against most major currencies on Tuesday as traders walked back expectations of near-term monetary tightening, although the imminent threat of an escalation in t...
Dollar slips to lowest since early June as rate hike bets fade | Honolulu Star-Advertiser
The dollar fell to its lowest level in more than two months on Monday as traders trimmed U.S. rate hike bets against the backdrop of a run of softer economic data, leaving the euro at two-month highs and the battered yen on stronger ground for now.
Dollar Extends Slide as Traders Scale Back Fed Tightening Bets
Shares steady, dollar slips as markets pare Fed rate risks
Global shares edged higher and the dollar fell to its lowest level since June on Monday after a run of soft U.S. economic data, including an unexpected drop in retail sales, saw markets reduce bets for an imminent rate hike from the Federal Reserve.
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