Forex: dollar holding firm on lowered expectations of a Fed rate cut part 2
The data was lightweight, though the DXY got a lift from Bean Town Fed President Rosengren UN agency dissented against the speed cut in July, advocating for the Fed to pause at this stage, optimistic on the America economy and showing very little concern for overseas doom and gloom. In turn, America 2-year Treasury yields climbed from one.50% to 1.55% whereas the one0-year yield rose from 1.58% to 1.61%. Still, markets expect a rate cut as presently as Sept.
As for currency action, analysts at Westpac summed it up as follows:
The America dollar was loosely stronger, supported by higher yields - The Washington Post according that the White House was considering cutting the payroll tax to stimulate growth.
EUR/USD fell from one.1110 to 1.1080.
GBP/USD was stormy, overall a touch lower, around 1.2130.
USD/JPY rose from 106.30 to 106.70.
AUD/USD ground lower from zero.6785 to 0.6765. NZD equally fell from zero.6425 to 0.6407. AUD/NZD found resistance at one.0570.
Eurozone core inflation for July was finalised at zero.9% yoy, needless to say, though the headline live was revised lower from one.1% to 1.0%.
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