US dollar sharpens decline with commodities eking out gains
The US dollar fell against most major rivals on Monday and extended the losses amid changing expectations about the Federal Reserve’s policies.
Fed Chair Jerome Powell said last week that strong US growth will allow Fed members to slow down the pace of interest rate cuts.
Powell described the current US economic growth as the best among all major economies, despite last month’s disappointing jobs growth, which was due to hurricanes and labor strikes.
Boston Fed President Suzan Collins said in a Wall Street Journal article that cutting interest rates once more in December is possible but by no means guaranteed.
Otherwise, the dollar index fell 0.4% as of 18:55 GMT to 106.2, with a session-high at 106.8, and a low at 106.2.
Aussie
The Australian dollar rallied 0.7% against the US dollar as of 19:10 GMT to 0.651.
Loonie
The Canadian dollar rose 0.6% as of 19:10 GMT against its US counterpart to 0.7138.
Gold extends gains to 2% as dollar slips
Gold prices gained ground on Monday and extended the gains as the dollar declined against most major rivals.
Nomura’s analysts expect the Fed to maintain interest rates in December, before cutting it by 25 basis points in both March and June, then holding off rate cuts until March 2026.
Fed Chair Jerome Powell said last week that strong US growth will allow Fed members to slow down the pace of interest rate cuts.
Powell described the current US economic growth as the best among all major economies, despite last month’s disappointing jobs growth, which was due to hurricanes and labor strikes.
Boston Fed President Suzan Collins said in a Wall Street Journal article that cutting interest rates once more in December is possible but by no means guaranteed.
Otherwise, the dollar index fell 0.4% as of 18:55 GMT to 106.2, with a session-high at 106.8, and a low at 106.2.
On trading, gold spot prices rose 1.8% as of 18:56 GMT to $2616.3 an ounce.
Wall Street heads higher as the week opens up
US stock indices were mostly higher on Monday as investors assess Federal Reserve Chair Jerome Powell’s latest remarks, and the impact of upcoming trade policies by US President-elect Donald Trump.
Nomura’s analysts expect the Fed to maintain interest rates in December, before cutting it by 25 basis points in both March and June, then holding off rate cuts until March 2026.
Fed Chair Jerome Powell said last week that strong US growth will allow Fed members to slow down the pace of interest rate cuts.
Powell described the current US economic growth as the best among all major economies, despite last month’s disappointing jobs growth, which was due to hurricanes and labor strikes.
Boston Fed President Suzan Collins said in a Wall Street Journal that cutting interest rates once more in December is possible but by no means guaranteed.
On trading, Dow Jones fell 0.1%, or 28 points to 43422 points as of 15:51 GMT, while S&P 500 rose 0.4%, or 26 points to 5896 points, as NASDAQ rose 0.8%, or 160 points to 18840 points.
Copper rises as dollar loses ground, with eyes on Chinese policies
Copper prices rose on Monday as the dollar dipped against most major rivals, while traders analyze China’s government policies to boost demand and growth.
US President-elect Trump is expected to choose Marco Rubio as foreign secretary according to Reuters sources, which would be the most hawkish choice for China and Israel policies.
Trump remains steadfast on his trade policies, which include heavy tariffs on Chinese and European products, which could cause inflationary pressures on the economy.
A stronger dollar in recent data has also weighed on minerals prices, after the greenback index hit four-month highs on Trump trade and momentum.
For today, the dollar index tapered off with a 0.1% dip as of 15:33 GMT to 106.5, with a session-high at 106.8, and a low at 106.4.
Copper December futures rose 0.7% in American trade to $4.13 a pound.