“The strong Q3 GDP result reinforces the market tension between good data on the one hand and the prospect of higher rates and a more restrictive Fed on the other,” Brian Rose, senior U.S. economist at UBS, said in a note. Gross domestic product increased at a 4.9% annualized rate last quarter, the fastest since the fourth quarter of 2021, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of third-quarter GDP growth. Economists polled by Reuters had forecast GDP rising at a 4.3% rate. While the Federal Reserve is widely expected to maintain steady interest rates at its upcoming policy meeting, it is anticipated to keep rates elevated for an extended period. The US Dollar Index (USDX, DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners’ currencies.
Many crypto experts and analysts firmly believe there is a higher probability for the Bitcoin ETFs to be approved by January 2024. In contrast, Bitcoin is on a positive track, with a $660.55 billion market cap, up 10.01%. The coin is currently trading at a price of $33,851.25, exhibiting an appreciatory surge of 10.16% in one day and 20.26% in seven days. “October’s jobs report takes on added importance on the back of September’s dramatic outcome, when net of revisions the cumulative payroll gain was 455k. The report will help to determine whether September was more signal or noise,” said BNP Paribas analysts in a note.
US DOLLAR CURRENCY INDEX
Earlier this month, the Securities and Exchange Commission’s (SEC) approval of BlackRock’s ETF application was falsely claimed by some reports, following which BTC soared to a much-anticipated $30,000 level. Despite the revelation of fabricated news, BTC retained its positive track, currently acquiring a 16-month high. Bitcoin (BTC), retaining its highest position in the world of cryptocurrencies, continues to garner attention among investors and enthusiasts. The speculations on the impending Bitcoin ETF approval remain a key contributor to Bitcoin’s price. The Fed and BoE are both expected to keep rates steady so, barring any surprises, the focus will be more around the message the policymakers communicate. The common currency has had a quiet October, and still is not far off a 10-month low of $1.0448 hit at the start of the month.
The Bank of Japan (BOJ) kicked off its two-day monetary policy meeting on Monday, leading a week that will also see interest rate decisions from the U.S. The Fed boss pledged to keep rates steady for the foreseeable future. The euro found support at $1.0540.The Fed boss pledged to keep rates steady for the foreseeable future.
- Meanwhile, the European Central Bank left interest rates unchanged as expected on Thursday, snapping an unprecedented streak of 10 consecutive rate hikes while insisting that any talk of rate cuts was premature.
- Euro bears got bruised.Conviction grows that the US dollar will stay well-bid as interest rates aren’t coming down any time soon.
- Gold price is widely followed in financial markets around the world.
- Euro CPI, rate set, jobs ahead may change the narrative.
- The euro found support at $1.0540.The Fed boss pledged to keep rates steady for the foreseeable future.
- ” – dollar bears, probably, as the US dollar flashed its first signs of weakness in months.“Is it happening, finally?
The GDP numbers follow business activity data earlier this week that highlighted the strength of the U.S. economy relative to the United Kingdom and the European Union. In an otherwise lightweight economic calendar, the dollar is waiting patiently to hear the Fed chair’s remarks on interest rates.In an otherwise lightweight economic calendar, the dollar is waiting patiently to hear the Fed chair’s remarks on interest rates. Investors and traders are keenly observing the market changes, anticipating an imminent ETF approval, especially after the SEC’s decision not to appeal the court’s ruling that necessitated the review of Grayscale Investment’s ETF application.
Dow Jones FXCM Dollar Index
Data may be intentionally delayed pursuant to supplier requirements. The U.S. dollar remains underpinned by fundamental factors, but for the currency to get a further boost it needs to break and remain above a key dollar Fibo. The consumer-price index for August is due out later today. Volatility might slowly start picking up ahead of the release.The consumer-price index for August is due out later today. Volatility might slowly start picking up ahead of the release.
U.S. DOLLAR CURRENCY INDEX
“On paper, there should not be enough out there to knock the dollar’s dominance this week, but focus on the U.S. quarterly refunding could throw some curveballs.” Can the euro pull itself together after what the ECB did? Find out about the latest drama on the EUR/USD.Can the euro pull itself together after what the ECB did? The dollar was also lifted recently by the euro’s weakness, attributed to a dimming growth outlook in the Eurozone and as the European Central Bank’s tightening cycle appeared to have reached its conclusion. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
US Dollar Index Discussions
The euro has been struggling to break out of its $1.05 consolidation. Euro CPI, rate set, jobs ahead may change the narrative.The euro has been struggling to break out of its $1.05 consolidation. Euro CPI, rate set, jobs ahead may change the narrative. A recent surge in global interest rates is heightening pressure on the Bank of Japan to change its bond yield control next week. Meanwhile, the European Central Bank left interest rates unchanged as expected on Thursday, snapping an unprecedented streak of 10 consecutive rate hikes while insisting that any talk of rate cuts was premature. On October 24, the U.S. dollar plummeted to one-month lows, following the surprising fall of the US Treasury market.
Let’s find out why.A painful rate increase amid an economic slowdown? The precious metal is aiming to recover its shine but the latest consumer-price report didn’t do much to make that happen.The precious metal is aiming to recover its shine but the latest consumer-price report didn’t do much to make that happen. The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080.The precious metal is in its seventh straight day of losses and has erased about 13% from its record high around $2,080. Investors flee to safe-haven assets during times of geopolitical uncertainty. Gold is a rare bright spot in such turbulent periods.Investors flee to safe-haven assets during times of geopolitical uncertainty.
Economic Calendar
In cryptocurrencies, bitcoin BTCUSD was down 1.2% at $34,084. The world’s largest cryptocurrency has surged 14% this week on speculation that an exchange-traded bitcoin fund is imminent. Japan’s low yields have made the currency an easy target for short-sellers and funding trades, with the widening gap in interest rates between Japan and the United States leading to persistent weakness in the yen.
The latest jobs data fueled a super strong rally in the dollar, after first pulling off a fake drop in the greenback, entrapping bears.The latest jobs data fueled a super strong rally in the dollar, after first pulling off a fake drop in the greenback, entrapping bears. Here’s what’s happening to the dollar.Fed chief Jerome Powell is set to speak later today. The dollar was headed for a weekly gain on Friday, aided by solid U.S. growth figures that bolstered the case for higher-for-longer Federal Reserve interest rates.
The dollar index held above 106.5 on Friday and was set to finish the week higher as further evidence that the US economy stayed resilient reinforced that higher-for-longer view on interest rates. A relentless greenback has punished, hammered, pummeled, and disciplined traders who hold short positions, anticipating a decline.A relentless https://1investing.in/ greenback has punished, hammered, pummeled, and disciplined traders who hold short positions, anticipating a decline. The EUR/USD rebounded from its weekly bottom of $1.0520 after signs of an overheating economy spooked traders.The EUR/USD rebounded from its weekly bottom of $1.0520 after signs of an overheating economy spooked traders.
A recent surge in global interest rates has heightened pressure on the BOJ to change its bond yield control policy, as speculation mounts that the central bank could hike its existing yield cap at this week’s meeting. In the mix in Europe on Monday was cooling German state inflation data, which pointed to slowing headline inflation in the euro zone’s largest economy, and a separate release showing German gross domestic product fell by 0.1% quarter on quarter, though this was above expectations. The U.S. dollar was modestly higher against a basket of currencies on Thursday after data showed the U.S. economy grew at its fastest pace in nearly two years in the third quarter, once again defying dire warnings of a recession that have lingered since 2022.
The monster rally in the US dollar has been backpedaling from its weekly highs. Jobs data today is expected to inject fresh volatility.The monster rally in the US dollar has been backpedaling from its weekly highs. Jobs data today is expected to inject fresh volatility. Inflation data is coming up today and forex traders are expecting a fairly flat percentage figure. Dollar is retreating across the board.Inflation data is coming up today and forex traders are expecting a fairly flat percentage figure. A deluge of purchasing managers’ surveys, euro zone inflation and GDP data, and U.S. nonfarm payrolls at the end of the week will also be competing for the top of traders’ minds.