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Dollar Drifts as Risk-Sensitive Currencies Rise on China Optimism

The dollar stumbled, as market participants considered U.S. economic data and the growing likelihood of further interest rate cuts. Traders now expect 73 basis points of easing for the remainder of the year, with CME Group’s FedWatch Tool indicating a probability of another half-percentage-point cut. This cautious outlook stems from the Federal Reserve’s focus on supporting the labour market while moderating inflation risks. The U.S. economy continues to show resilience, with the latest data revealing a healthier-than-expected labour market. Corporate profits in the second quarter also grew faster than initially reported. These indicators suggest a solid economic foundation, which has tempered fears of an imminent downturn. Read more to find out why dollar stumbled.

why dollar stumbled

Disclaimer:

The market participants remain on alert, balancing their expectations between the Federal Reserve’s decisions and China’s economic recovery efforts, which continue to shape sentiment across global markets. Risk management is advised to complement these releases closely for further indications of market trends.

Publication date:

2024-09-28 08:11:40 (GMT)

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