New York Money Market Conditions: Dollar Weakens in Response to Expectations of Fed Rate Cuts By InfoQuest

InfoQuest – The US dollar fell against major currencies in trading on the New York Forex Exchange on Friday (May 17), as markets continued to speculate on the timing of the Federal Reserve's decision to cut interest rates. Amid signs of slowing inflation and weakness in the US economy.

The dollar index, which measures the dollar's movement against six major currencies, fell by 0.02% to 104.445.

The dollar rose to 155.68 yen on Friday from 155.33 yen on Thursday. The US currency rose to 0.9082 Swiss francs from 0.9052 Swiss francs. The US currency rose to 10.7070 Swedish krona from 10.7032 Swedish krona, but the US dollar fell to 1.3609 Canadian dollars from 1.3613. Canadian Dollar.

The euro rose to $1.0876 on Friday from $1.0871 on Thursday. Meanwhile, the pound rose to US$1.2709 from US$1.2675.

CME Group's FedWatch tool indicates that investors are anticipating that the Fed is scheduled to cut interest rates twice this year, the first being in September. And next time in December.

Investors will be watching Federal Reserve Chairman Jerome Powell's statement this weekend. To find signals indicating the timing of a US interest rate cut.

Mr. Powell is scheduled to deliver a speech in Washington, D.C., in the United States, on Sunday, May 19, at 3:30 p.m., US time. Or on the morning of Monday, May 20 at 2:30 AM Thailand time.

Mr. Powell's speech this time comes after the US released a lower-than-expected Consumer Price Index (CPI) on May 15.

Powell said this earlier during the Foreign Bankers Association's annual meeting in Amsterdam. Netherlands on May 14, reporting that the Fed will hold interest rates longer than expected. This is because inflation is still higher than expected.

However, Mr. Powell confirmed that the Fed will not raise interest rates again.

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