Dollar Rises Against Euro and Yen: Investors Eye Inflation Data and Fed Rate Cuts

The dollar rose against the euro and yen. Investors adjusted their positions ahead of inflation data from Europe and the US, and portfolio rebalancing at the end of the month also had an impact.

The market is paying close attention to data that could provide clues as to when the U.S. Federal Reserve will start cutting interest rates.

The US personal consumption expenditure (PCE) price index for January, which will be released on the 29th, is expected to increase by 0.3% from the previous month and by 2.4% from the same month last year. The core index is expected to rise 0.4% from the previous month and 2.8% from the same month last year. (USPCE=ECI), opens new tab, (USPCEY=ECI), opens new tab, (USPCEM=ECI), opens new tab, (USPCE2=ECI), opens new tab

The Japanese yen has also weakened against the dollar, approaching the weakest level since November 16th of 150.88 yen, which was reached on February 13th.

Dollar/yen was 0.12% higher at 150.68 yen at the end of the session.

The crypto asset Bitcoin exceeded $60,000 for the first time since November 2021 and is approaching $64,000. Shares closed 6.5% higher at $60,334.

US bond yields have fallen. This comes after the economic growth rate slowed slightly in the fourth quarter of 2023, with the release of key inflation indicators pending.

The revised real gross domestic product (GDP) for the fourth quarter of 2023 announced by the U.S. Department of Commerce on the 28th is an annualized increase of 3.2% compared to the previous quarter, a slight downward revision from the preliminary figure of 3.3% increase. Ta. Economists polled by Reuters had forecast a rate of 3.3%, unchanged from the preliminary estimate.See more

The yield on the two-year bond fell 6.2 basis points (bp) to 4.649%, and the yield on the benchmark 10-year bond fell 3.5 basis points to 4.404%.

There are concerns in the market that the personal consumption expenditure (PCE) price index to be released on the 29th will rise more than expected. Two weeks ago, the consumer price index (CPI) for January exceeded expectations.

All three major indexes closed slightly lower. Selling dominated the day ahead of the release of inflation indicators, which are important in figuring out when the US Federal Reserve will cut interest rates.

The Personal Consumption Expenditure (PCE) price index (January), a price index that the Federal Reserve focuses on, is expected to rise by 0.3% from the previous month.

On this day, UnitedHealth Group (UNH.N), opens new tab, a major medical insurance and medical services company, fell 4.93%, Dow Jones Industrial Average (.DJI), opens new tab, and S&P 500 (. SPX), opens new tab. Reports that the U.S. Department of Justice has begun an investigation into the company under antitrust laws have been disgusting. See more Semiconductor manufacturing equipment maker Applied Materials (AMAT.O), opens new tab fell 2.62%. It was reported that the company received a subpoena from the U.S. Securities and Exchange Commission (SEC). Beyond Meat (BYND.O), opens new tab, which makes and sells plant-based meat substitutes, jumped 30.72%. There was a short squeeze in the company’s shares, which are heavily sold, after the company announced a plan to improve its sluggish profit margins by raising prices and drastically cutting costs.

There was a slight decline in gold futures amid a mood of postponement ahead of the release of US inflation indicators. The settlement price (equivalent to the closing price) of the main contract month, April, was $2,042.70 per ounce, down $1.40 (0.07%) from the previous day.

The U.S. crude oil futures fell for the first time in three business days, weighed down by the U.S. Energy Information Administration’s (EIA) weekly report showing that crude oil inventories had increased more than market expectations. The settlement price (equivalent to the closing price) of the April contract for the standard U.S. oil grade WTI was $78.54 per barrel, down $0.33 (0.42%) from the previous day. The May contract fell by $0.40 to $77.83.

This is a provisional value based on LSEG data.The previous day’s ratio may not match

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2024-02-29 01:07:00
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