Dollar edges down on profit-taking

2022-08-08 16:15:06 GMT (Economies.com)
Dollar edges down on profit-taking

The dollar index tilted lower in Asian trade off July 28 highs on profit-taking amid a lack of data from the US and ahead of US inflation data later today.

 

As of 011:01 GMT, the dollar index fell 0.15% to 106.44, with a session-low at 106.25.

 

From the US, the unemployment rate fell to February 2020 lows at 3.5%, while the economy added more jobs than expected last month, paving the way for a 0.75% rate hike by the Federal Reserve in September. 

 

Such data boosted the greenback last week before dipping on active profit taking, with traders now expecting a 73.5% chance of another Fed rate hike at the next meeting. 

 

This week, the Senate agreed on a $430 billion law that aims to combat climate change and implement some tax exemptions in the field. 

 

US 10-year and two-year yields are still reversed in an early sign of depression, which already occurred in the first two quarters of the year.  

 

Tomorrow, US consumer prices are expected up 0.2%, compared to a 1.3% rise in June, while core prices are expected up 0.5%. 

 

Inflation data are expected to bolster the case for a 0.75% rate hike at the next Fed meeting, especially if inflation came above 9%. 

 
 
 
  Symbol Last Change Chg.%
0.9802
0.0147
1.5193%
1.1165
0.0345
3.1856%
19.049
0.190
1.008%
80.050
0.756
0.953%
87.96
-0.53
0.60%
1664.495
19.135
1.163%
 
 
Live Forex Updates