Dollar Weakens on US Job Openings Data; Loonie Lags
A dollar gauge declined to session lows after a report showed US job openings fell in July to the lowest in 10 months, bolstering expectations for the Federal Reserve to cut rates this month. The Canadian dollar lagged behind peers in the Group of 10 against US dollar Wednesday.
The Bloomberg Dollar Spot Index traded down 0.1%, after falling as much as 0.3% on the report.
Traders will remain focused on the labor market and implications for September’s policy move, with ADP jobs due Thursday and payrolls on Friday.
Fed Governor Christopher Waller said the US central bank should begin lowering interest rates this month and make multiple cuts in the coming months, adding that officials could debate the precise pace of reductions.
Treasury Secretary Scott Bessent is planning to start a blitz of interviews on Friday in search of a candidate to be the next chair of the Federal Reserve, the Wall Street Journal reported, citing people familiar with the matter.
Former Treasury Secretary Lawrence Summers warned that while financial markets have so far shown limited concern with regard to the Fed’s independence, the situation “could turn very quickly”.
USD/CAD traded 0.1% higher at 1.3795.
Canadian firms’ output per hour worked declined for a second straight quarter as the trade dispute with the US intensified.
GBP/USD rose 0.4% to 1.3442, after touching a fresh four-week low at 1.3333.
Chancellor of the Exchequer Rachel Reeves will deliver the UK’s annual budget on Nov. 26
Investors willing to brave the UK bond market will likely be able to reap “equity-style” returns by betting on 30-year gilts, Eric Lonergan at Calibrate Partners told Bloomberg TV.
EUR/USD climbed 0.2% to 1.1659; Germany’s services sector shrank last month, proving less resilient than initially estimated
While the euro’s share of global FX reserves has held around 20%, ING strategists see an ongoing trend in favor of the currency due to growing demand from smaller central banks, including Poland, Mexico, Thailand and Indonesia.
USD/JPY fell 0.2% to 148.13
Japanese Prime Minister Shigeru Ishiba met with Bank of Japan Governor Kazuo Ueda to exchange views on the economy and financial markets including currencies, after the yen weakened amid rising pressure for Ishiba to resign.
AUD/USD rose 0.3% to 0.6542; Aussie supported after stronger-than-expected GDP data damp bets on RBA interest-rate cuts.
Source : Bloomberg
