Dollar Recoups Losses Suffered After Weak Jobs DataDollar Recoups Losses Suffered After Weak Jobs Data
The U.S. dollar completely recovers from steep falls following Friday’s weaker-than-forecast U.S. non-farm payrolls data and now awaits new catalysts to give it fresh direction, says Brad Bechtel, global head of FX at Jefferies. “The DXY [dollar index] filled the gap almost to the penny as it rose back into the 105.80s, right where we were pre-NFP and after making lows down around the 104.80s earlier this week,” he says in a note.
The DXY is last up 0.1% at 105.603, having hit a high for the day of 105.8720.
Sterling falls as markets look to the prospect of interest-rate cuts after comments made by Bank of England Chief Economist Huw Pill this week,
ING analyst Francesco Pesole says in a note. Pill said there would be another sharp fall in inflation in October and hinted at rate cuts in mid-2024, contradicting previous efforts by BOE officials to “push a narrative of higher for longer,” Pesole says.
ING sees scope for “further dovish repricing down the road in BOE expectations.” Markets are pricing in 30 basis points of U.K. rate cuts by August 2024, which looks rather modest compared to U.S. and eurozone expectations, he says. GBP/USD falls 0.3% to 1.2255.
Source: WSJ.com: World News
