Dollar heads towards three-month lows before Fed meeting; Draghi eyed
LONDON - The dollar weakened against its rivals on Tuesday, heading back towards a recent three-month low before a U.S. central bank meeting gets underway with expectations growing the Fed will signal its first rate cut in a decade.
A CME Fedwatch tool puts the probability of a quarter-point interest rate cut by the Fed at 20%, with a 70% probability of a rate cut at its next meeting in July. “The majority view among the Fed comments does not suggest any particular appetite for an immediate rate cut, say in June or July,” HSBC strategists said in a note. “The balance of risks favours being long the dollar, not least because positioning is likely a little lighter after the recent sell-off.”
While hedge funds have pared back some of their long positions on the dollar in recent weeks, overall net positions remain near 2019 highs.The euro wallowed at the lower end of a recent trading range against the dollar, holding above the $1.12 line, as markets awaited a speech by European Central Bank chief Mario Draghi where he might shed some more light on how policymakers will fight the next economic downturn.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Strong data keeps dollar near two-week highs before Fed meetingThe dollar held near a two-week high against its major rivals on Monday ahead of...
Read more »
Gold prices subdued on firmer dollar; Fed meeting in focusGold prices remained subdued on Monday after retreating from a 14-month peak in ...
Read more »
The Fed Just Released a Damning Indictment of CapitalismThe true “extremists” in American politics are those who insist that our economic system is working just fine.
Read more »
Dow futures higher as investors await Fed meetingU.S. stock index futures were higher on Monday morning, as investors look ahead to a crucial Federal Reserve meeting this week.
Read more »
If a recession hits, even Fed rate cuts won't be enough to stop it, Ned Davis warnsWith uncertainty keeping a lid on U.S. stocks, Ed Clissold of Ned Davis Research says the rest of 2019 is likely to be a 'choppy,' but somewhat opportunistic, ride for investors.
Read more »
Asia markets edge up; Fed meeting set to kick offMarkets in Asia edged up in Tuesday morning trade as investors awaited the start of a closely-watched meeting by the U.S. Federal Reserve, set to kick off later stateside.
Read more »