Dollar Trims Best Weekly Performance in 11 Months
The dollar fell against most Group-of-10 peers, yet remained on track for its best week since November 2024 as the euro and yen recouped only a small portion of their recent losses.
The Bloomberg Dollar Spot Index is up 1.2% this week, and down 0.2% on the day; spot retreat reflects a pullback in bullish options pricing as investors take a breather into the weekend, according to Europe-based traders.
Money markets still favor two quarter-point interest rate cuts by year-end, almost fully pricing a 25bp cut this month by the Fed.
EUR/USD halves a 0.2% gain to trade at 1.1577; French President Emmanuel Macron said he’ll name a new prime minister by Friday evening, having for the time being avoided the need to call a snap election that would have deepened the political chaos in France.
One-month riskies hit 19bps high, for the first time since June, putting the gauge on track for its third-biggest weekly bearish repricing in three years.
USD/JPY falls as much as 0.4% to 152.39 before paring losses; Japan’s Finance Minister Katsunobu Kato stepped up his warnings over yen movements, after the currency hit a fresh eight-month low against the dollar early Friday, despite efforts by the ruling party’s new leader to calm market concerns.
Japan’s governing coalition collapsed Friday, delivering a major blow to new ruling party leader Sanae Takaichi.
The currency pair is still heading for its best week in a year.
AUD/USD little changed at 0.6554; Reserve Bank Governor Michele Bullock said Australia’s economy is in a “pretty good spot” with inflation inside the central bank’s 2%-3% target band and the labor market still tight.
Some information comes from FX traders familiar with the transactions who asked not to be identified because they aren’t authorized to speak publicly.
Source : Bloomberg
