tradingkey.logo

DXY: May break above 101.00 again – DBS

FXStreetAug 28, 2024 11:17 AM

The Dollar Index (DXY) depreciated 0.3% to 100.55, its weakest level since July 2023, and then rebounded back, DBS Senior FX Strategist Philip Wee notes.

Fed is inclined for a 25-bps rate cut

“While the US Treasury 10Y yield was barely changed at 3.82%, the 2Y yield eased 3.7 bps to 3.90%. Both the S&P 500 and Nasdaq Composite Indices rose by 0.16% each.  Fed officials are rallying around Fed Chair Jerome Powell’s call to lower interest rates in September. This Friday’s PCE deflator has become less relevant given the Fed’s priority to prevent further cooling of the US labor market.” 

“Although the Conference Board’s Consumer Confidence Index increased to 103.3 in August from an upwardly revised 101.9 in July, consumers showed more concern about the labor market. For example, the proportion of respondents who felt that jobs were ‘plentiful’ fell to 32.8% from 33.4%, while the share of those who reckoned jobs were ‘hard to get’ increased slightly to 16.4% from 16.3%.”

“However, the expectations index signaled less concerns of a recession ahead by pushing above 80 to 82.5 in August from an upwardly revised July to 81.1. Overall, the consumer survey supported the Fed’s inclination for a 25-bps rate cut vs. the market’s bet for a larger 50 bps move.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Related Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.