As worries over the state of the American economy returned on Friday, the dollar (USD) dipped against a basket of foreign currencies ahead of a Federal Reserve meeting on interest rates next week.
Investors are anticipating rate decisions from the Fed, the European Central Bank (ECB), and the Bank of England (BoE) next week after a break in market-moving news.
Markets anticipate that all three will gradually boost interest rates—with an average increase of 0.5 percentage points—while continuing to strive to contain inflation.
In a note to investors, currency experts at MUFG said that as markets begin to factor in the possibility of a peak in interest rates early next year, volatility levels for major currencies have fallen back around their long-run average.
Meanwhile, data released on Thursday revealed a slight increase in US unemployment claims, which made investors more anxious about the future.
Dollar Index Still Up 9.5% YTD
The dollar index (DXY), which compares the value of the dollar to a basket of six top currencies, fell 0.1% to the 104.680 low earlier today.
The index is down more than 6% for the fourth quarter, reflecting weaker forecasts for inflation and interest rates, but is still up over 9.5% for the year as a whole.
According to data from Refinitiv, markets are pricing in a 93% possibility that the Fed will raise its benchmark rate by 50 basis points (bps) at its meeting on December 14 and a 7% chance of a 75 bps point rise.
In other news, the euro (EUR) was steady against the dollar at $1.05580, not far from its six-month high reached earlier this week, and on pace for a third straight week of gains.
You can purchase Lucky Block here. Buy LBLOCK
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.