The greenback remained stable, following the Reserve Bank of Australia’s decision to leave rates unchanged at 4.35%. The U.S. currency was also not lifted by a rise in Treasury yields overnight, as investors await macro retail sales data and comments from Federal Reserve officials to better gauge the timing and pace of interest rate cuts . Analysts at Westpac Strategy Group expect the next macroeconomic data to be the one by which currency markets will analyze whether the US economy is weakening under the Fed’s restrictive policy or not.
The euro, according to ING experts, could prove volatile, as France’s political risks are offset by the prospects of a rate cut in the United States and the United Kingdom, weighing on the dollar and the pound. The risk of Marine Le Pen’s party coming to government has sparked fears over the country’s debt, with investors reducing exposure to the euro ahead of elections on June 30 and July 7. However, Da Ing argue that “any decline in the European currency could be limited by the fact that slowing inflation makes US rate cuts more likely in 2024, while it is increasingly plausible to expect the BoE to cut its rates by August “. (All rights reserved)
MF Dow Jones
Posting time: 06/18/2024 08:15
Last update: 06/18/2024 08:15
