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Jordan News
9 hours ago
- Business
- Jordan News
Dollar Retreats as Optimism Grows Over U.S. Trade Deals - Jordan News
Dollar Retreats as Optimism Grows Over U.S. Trade Deals The dollar weakened on Monday against the yen and fell to its lowest level in nearly four years versus the euro, buoyed by optimism about U.S. trade agreements and traders' expectations of swift Federal Reserve rate cuts. اضافة اعلان It also approached four‑year troughs against the British pound and hit ten‑year lows versus the Swiss franc after the White House moved closer to a deal with China, while Canada scrapped its digital services tax to resume stalled talks. Investors interpreted Federal Reserve Chair Jerome Powell's testimony to Congress last week as dovish on policy, since he signaled the possibility of rate cuts if inflation does not rise this summer due to tariffs. The CME Group's FedWatch Tool shows a 91.5% probability of a 25‑basis‑point cut by September, up from about 83% a week ago. A series of U.S. economic releases is due this week, including the key jobs report, which could sway market expectations of the Fed's next move. Francisco Pesoli, a currency analyst at ING, said: 'Overall, risk is tilted toward dollar weakness, but our forecasts of mild job growth and rising inflation in coming months suggest the market may have overdone the dovish pricing.' He added that any disappointing data could spark another round of dollar selling. President Trump's attacks on Powell have also weighed on the dollar; on Friday, Trump said he would be 'thrilled' if Powell resigned before his term ends in May and reiterated his desire to cut the benchmark rate to 1% from the current 4.25–4.5%, hinting at replacing Powell with someone more dovish. Investors are also watching a massive tax‑cut and spending package now before the Senate, which the Congressional Budget Office estimates could add $3.3 trillion to U.S. debt over a decade. The U.S. dollar index, which measures the currency against six major peers, is on track for its biggest six‑month drop since the early 1970s, when major currencies began to float freely. In fixed‑income markets, Wall Street gained momentum on Friday, driving the S&P 500 and Nasdaq to record closes with roughly 0.5% gains each, while the Dow rose about 1%. The index stood at 97.183, near a three‑and‑a‑half‑year low logged last week. The dollar fell 0.4% to 144.11 yen, while the euro was little changed at $1.1723, close to its highest since September 2021. The pound slipped 0.1% to $1.3701, near its strongest since October 2021. Dollar strength against the Swiss franc eased, with the franc trading at 0.7978 per dollar, after Friday's drop to 0.7955—a level not seen since January 2015 when the Swiss National Bank abandoned its euro peg. U.S. Treasury Secretary Scott Bair on Friday said Washington and Beijing resolved issues over rare‑earth metal and magnet shipments from China under a Geneva agreement reached in May. He added that trade deals with other nations could be finalized by the U.S. Labor Day holiday on September 1, indicating some flexibility around a July 9 deadline or the imposition of stiff 'reciprocal' tariffs. Analysts at Commonwealth Bank of Australia wrote in their weekly FX strategy note: 'We expect the dollar to hinge on U.S. trade developments this week. We remain skeptical that many deals can be concluded so quickly.' The Chinese yuan jumped 0.1% to 7.163 per dollar on news of trade deals, while the Canadian dollar gave up some early gains to trade around its previous levels. — Reuters
CNBC
2 days ago
- Business
- CNBC
Dollar droops as optimism over U.S. trade deals boost Fed easing bets
The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts. The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as U.S. President Donald Trump injected some uncertainty into the market's bullish narrative by abruptly cutting off trade talks with Ottawa. Investors interpreted Fed Chair Jerome Powell's testimony to U.S. Congress last week as dovish, after he said that rate cuts were likely if inflation does not spike this summer due to tariffs. Bets for at least one quarter-point reduction by September have risen to 92.4% according to CME Group's FedWatch Tool, from about 70% a week earlier. The Fed's rate-setting committee also meets next month, but does not gather in August. "The market pricing implies a cut as a slam dunk" in September, Chris Weston, head of research at Pepperstone, wrote in a client note. Friday's monthly U.S. payrolls report is "the marquee risk event" this week, Weston said, and the risk to the dollar "seems asymmetric given the Fed's reaction function is biased towards the timing of the next cut." That means the dollar is more likely to suffer a rout on weak numbers than rally on a hot outcome, he said. An additional weight on the dollar came from Trump's continued assault on Powell, saying on Friday that he would "love" if the Fed chief resigned before his term ends in May. Trump also said he wants to cut the benchmark rate to 1% from the current 4.25% to 4.5%, and reiterated that he plans to replace Powell with a more dovish chairperson. Investors are also keeping an eye on Trump's massive tax-cut and spending bill, which is currently before the Senate and could add $3.3 trillion to the national debt over a decade, according to the Congressional Budget Office. The dollar index which measures the U.S. currency against six major counterparts, including the euro, sterling and franc - edged up 0.1% to 97.276, but was still not far from the more than three-year low of 96.933 late last week. The euro was slightly weaker at $1.1716, just off the highest level since September 2021 reached on Friday at $1.1754. Sterling was little changed at $1.3709, hovering close to Thursday's peak of $1.37701, a level not previously seen since October 2021. The dollar was steady at 0.7988 Swiss franc, after dipping to 0.7955 franc on Friday for the first time since January 2015, when the Swiss National Bank unexpectedly removed a cap on the currency's value against the euro. The U.S. currency was flat at 144.58 yen. U.S. Treasury Secretary Scott Bessent said on Friday that Washington and Beijing had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the United States, further modifying a deal reached in May in Geneva. He also said various trade deals with other countries could be done by the U.S. Labor Day holiday on September 1, suggesting some wiggle room on Trump's July 9 deadline to reach deals or face aggressive "reciprocal" tariffs. "USD will be driven by U.S. trade developments this week in our view," Commonwealth Bank of Australia analysts wrote in their weekly FX strategy report. "We are skeptical so many trade deals can be agreed so quickly," they said. "Nonetheless, news that some trade deals have been agreed will support the USD against the major currencies - EUR, JPY and GBP - (and) the USD will likely decrease against other currencies such as AUD." The risk-sensitive Australian dollar ticked up slightly to $0.6537, edging back towards Thursday's 7-1/2-month high of $0.6563.
Business Recorder
2 days ago
- Business
- Business Recorder
Dollar droops as optimism over US trade deals boost Fed easing bets
TOKYO: The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts. The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as U.S. President Donald Trump injected some uncertainty into the market's bullish narrative by abruptly cutting off trade talks with Ottawa. Investors interpreted Fed Chair Jerome Powell's testimony to U.S. Congress last week as dovish, after he said that rate cuts were likely if inflation does not spike this summer due to tariffs. Bets for at least one quarter-point reduction by September have risen to 92.4% according to CME Group's FedWatch Tool, from about 70% a week earlier. Dollar hovers near 3-1/2-year low as traders wager on US rate cut The Fed's rate-setting committee also meets next month, but does not gather in August. 'The market pricing implies a cut as a slam dunk' in September, Chris Weston, head of research at Pepperstone, wrote in a client note. Friday's monthly U.S. payrolls report is 'the marquee risk event' this week, Weston said, and the risk to the dollar 'seems asymmetric given the Fed's reaction function is biased towards the timing of the next cut.' That means the dollar is more likely to suffer a rout on weak numbers than rally on a hot outcome, he said. An additional weight on the dollar came from Trump's continued assault on Powell, saying on Friday that he would 'love' if the Fed chief resigned before his term ends in May. Trump also said he wants to cut the benchmark rate to 1% from the current 4.25% to 4.5%, and reiterated that he plans to replace Powell with a more dovish chairperson. Investors are also keeping an eye on Trump's massive tax-cut and spending bill, which is currently before the Senate and could add $3.3 trillion to the national debt over a decade, according to the Congressional Budget Office. The dollar index - which measures the U.S. currency against six major counterparts, including the euro, sterling and franc - edged up 0.1% to 97.276, but was still not far from the more than three-year low of 96.933 late last week. The euro was slightly weaker at $1.1716, just off the highest level since September 2021 reached on Friday at $1.1754. Sterling was little changed at $1.3709, hovering close to Thursday's peak of $1.37701, a level not previously seen since October 2021. The dollar was steady at 0.7988 Swiss franc , after dipping to 0.7955 franc on Friday for the first time since January 2015, when the Swiss National Bank unexpectedly removed a cap on the currency's value against the euro. The U.S. currency was flat at 144.58 yen . U.S. Treasury Secretary Scott Bessent said on Friday that Washington and Beijing had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the United States, further modifying a deal reached in May in Geneva. He also said various trade deals with other countries could be done by the U.S. Labor Day holiday on September 1, suggesting some wiggle room on Trump's July 9 deadline to reach deals or face aggressive 'reciprocal' tariffs. 'USD will be driven by U.S. trade developments this week in our view,' Commonwealth Bank of Australia analysts wrote in their weekly FX strategy report. 'We are sceptical so many trade deals can be agreed so quickly,' they said. 'Nonetheless, news that some trade deals have been agreed will support the USD against the major currencies - EUR, JPY and GBP - (and) the USD will likely decrease against other currencies such as AUD.' The risk-sensitive Australian dollar ticked up slightly to $0.6537, edging back towards Thursday's 7-1/2-month high of $0.6563.
New Straits Times
2 days ago
- Business
- New Straits Times
Dollar droops as optimism over US trade deals boosts Fed easing bets
TOKYO: The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over US trade deals bolstered bets for earlier Federal Reserve interest rate cuts. The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as US President Donald Trump injected some uncertainty into the market's bullish narrative by abruptly cutting off trade talks with Ottawa. Investors interpreted Fed Chair Jerome Powell's testimony to US Congress last week as dovish, after he said that rate cuts were likely if inflation does not spike this summer due to tariffs. Bets for at least one quarter-point reduction by September have risen to 92.4 per cent, according to CME Group's FedWatch Tool, from about 70 per cent a week earlier. The Fed's rate-setting committee also meets next month, but does not gather in August. "The market pricing implies a cut as a slam dunk in September," Chris Weston, head of research at Pepperstone, wrote in a client note. Friday's monthly US payrolls report is "the marquee risk event" this week, Weston said, and the risk to the dollar "seems asymmetric given the Fed's reaction function is biased towards the timing of the next cut." That means the dollar is more likely to suffer a rout on weak numbers than rally on a hot outcome, he said. An additional weight on the dollar came from Trump's continued assault on Powell, saying on Friday that he would "love" if the Fed chief resigned before his term ends in May. Trump also said he wants to cut the benchmark rate to one per cent from the current 4.25 to 4.50 per cent, and reiterated that he plans to replace Powell with a more dovish chairperson. Investors are also keeping an eye on Trump's massive tax-cut and spending bill, which is currently before the Senate and could add US$3.3 trillion to the national debt over a decade, according to the Congressional Budget Office. The dollar index – which measures the US currency against six major counterparts, including the euro, sterling and franc – edged up 0.10 per cent to 97.28, but was still not far from the more than three-year low of 96.93 late last week. The euro was slightly weaker at US$1.1716, just off the highest level since September 2021 reached on Friday at US$1.1754. Sterling was little changed at US$1.3709, hovering close to Thursday's peak of US$1.3770, a level not previously seen since October 2021. The dollar was steady at 0.7988 Swiss franc, after dipping to 0.7955 franc on Friday for the first time since January 2015, when the Swiss National Bank unexpectedly removed a cap on the currency's value against the euro. The US currency was flat at 144.58 yen. US Treasury Secretary Scott Bessent said on Friday that Washington and Beijing had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the United States, further modifying a deal reached in May in Geneva. He also said various trade deals with other countries could be done by the US Labor Day holiday on September 1, suggesting some wiggle room on Trump's July 9 deadline to reach deals or face aggressive "reciprocal" tariffs. "USD will be driven by US trade developments this week in our view," Commonwealth Bank of Australia analysts wrote in their weekly FX strategy report. "We are sceptical so many trade deals can be agreed so quickly," they said. "Nonetheless, news that some trade deals have been agreed will support the USD against the major currencies – EUR, JPY and GBP – (and) the USD will likely decrease against other currencies such as AUD." The risk-sensitive Australian dollar ticked up slightly to US$0.6537, edging back towards Thursday's 7-1/2-month high of US$0.6563.
Time of India
2 days ago
- Business
- Time of India
Dollar droops as optimism over US trade deals boost Fed easing bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The dollar wallowed near its lowest in nearly four years against the euro on Monday as market optimism over U.S. trade deals bolstered bets for earlier Federal Reserve interest rate cuts The greenback also languished near a four-year low versus sterling and a more than decade trough to the Swiss franc after Washington and China moved closer to a tariff agreement, even as U.S. President Donald Trump injected some uncertainty into the market's bullish narrative by abruptly cutting off trade talks with interpreted Fed Chair Jerome Powell 's testimony to U.S. Congress last week as dovish, after he said that rate cuts were likely if inflation does not spike this summer due to for at least one quarter-point reduction by September have risen to 92.4% according to CME Group's FedWatch Tool, from about 70% a week earlier. The Fed's rate-setting committee also meets next month, but does not gather in August."The market pricing implies a cut as a slam dunk" in September, Chris Weston, head of research at Pepperstone, wrote in a client monthly U.S. payrolls report is "the marquee risk event" this week, Weston said, and the risk to the dollar "seems asymmetric given the Fed's reaction function is biased towards the timing of the next cut." That means the dollar is more likely to suffer a rout on weak numbers than rally on a hot outcome, he additional weight on the dollar came from Trump's continued assault on Powell, saying on Friday that he would "love" if the Fed chief resigned before his term ends in also said he wants to cut the benchmark rate to 1% from the current 4.25% to 4.5%, and reiterated that he plans to replace Powell with a more dovish are also keeping an eye on Trump's massive tax-cut and spending bill, which is currently before the Senate and could add $3.3 trillion to the national debt over a decade, according to the Congressional Budget dollar index - which measures the U.S. currency against six major counterparts, including the euro, sterling and franc - edged up 0.1% to 97.276, but was still not far from the more than three-year low of 96.933 late last euro was slightly weaker at $1.1716, just off the highest level since September 2021 reached on Friday at $ was little changed at $1.3709, hovering close to Thursday's peak of $1.37701, a level not previously seen since October dollar was steady at 0.7988 Swiss franc, after dipping to 0.7955 franc on Friday for the first time since January 2015, when the Swiss National Bank unexpectedly removed a cap on the currency's value against the U.S. currency was flat at 144.58 yen.U.S. Treasury Secretary Scott Bessent said on Friday that Washington and Beijing had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the United States, further modifying a deal reached in May in also said various trade deals with other countries could be done by the U.S. Labor Day holiday on September 1, suggesting some wiggle room on Trump's July 9 deadline to reach deals or face aggressive "reciprocal" tariffs."USD will be driven by U.S. trade developments this week in our view," Commonwealth Bank of Australia analysts wrote in their weekly FX strategy report."We are sceptical so many trade deals can be agreed so quickly," they said."Nonetheless, news that some trade deals have been agreed will support the USD against the major currencies - EUR, JPY and GBP - (and) the USD will likely decrease against other currencies such as AUD."The risk-sensitive Australian dollar ticked up slightly to $0.6537, edging back towards Thursday's 7-1/2-month high of $0.6563.
