Dollar Slips Amid Euro Buy Stops; Pound Steadies
The dollar weakens versus most Group-of-10 peers amid month-end and profit-taking flows before key US data releases due later Wednesday.
The Bloomberg Dollar Spot Index snaps a three-day advance to drop by as much as 0.3%; it’s up this month by 3%, the most since Sept. 2022.
The 10-year Treasury yield slips two basis points to 4.23%.
The US ADP employment change report is on the radar for investors after data this week showed job openings fell in September to the lowest since early 2021.
UR/USD heads for a third daily advance, gains as much as 0.4% to 1.0859, highest since Oct. 21, before halving gains
Data showed that growth quickened in France and held steady in Spain, exceeding expectations; Germany’s surprise 0.2% GDP increase caught analysts off guard, though the reading for the previous three months was revised down sharply.
German regional CPI data came higher than the previous readings and money markets now see 31bps of cuts in December, four bps lower on the day.
GBP/USD orbits the 1.30 handle as traders wait for the Labour government’s first budget in almost 15 years.
The budget is expected to include £35 billion in tax and welfare savings, alongside a fiscal-rules revamp that will enable an extra £70 billion of government borrowing for investment.
USD/JPY down 0.1% at 153.16, versus 152.81 day low; overnight volatility briefly rises above 20% to highest since Oct. 3.
The BOJ is widely expected to stand pat Thursday in the face of elevated uncertainty, as financial markets brace for the US presidential election.
AUD/USD declines as much as 0.4% to 0.6537, the lowest since Aug. 8, before reversing losses as the greenback comes under broader pressure.
Australia’s core inflation remained elevated last quarter, reinforcing the Reserve Bank’s view that price pressures will take time to dissipate.
Source: Bloomberg
