Commerzbank’s Bernd Weidensteiner argues that despite market expectations for further Fed tightening, falling Oil and gasoline prices should lower U.S. inflation and ease pressure for hikes.
According to the June 23-25 Reuters poll, 78 of 102 economists expect that the Federal Reserve (Fed) will hold interest rates steady in the current range of 3.50%-3.75% the entire year, up from 72 economists who anticipated the same in the early June poll.
USD/CAD trades lower around 1.4180 on Friday, down 0.13% at the time of writing, as the US Dollar (USD) weakens following the latest US inflation data.
DBS Group Research strategist Philip Wee notes that the US Dollar Index (DXY) has seen its first post-FOMC decline as US inflation data suggest a possible peak.
Gold (XAU/USD) struggles to build on its intraday bounce of around $50 from the $3,983-$3982 region and flat lines below the $4,050 level during the first half of the European session on Friday.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 101.40 during the early European trading hours on Friday.
Silver price (XAG/USD) is down 2.5% to near $56.50 during the Asian trading session on Friday.
USD/CHF gains ground after registering nearly 0.30%, trading around 0.8100 during the Asian hours on Friday. The pair rises as the US Dollar (USD) finds support from growing expectations of a Federal Reserve (Fed) rate hike.
USD/IDR inches lower after opening at a bullish gap, remaining in the positive territory and trading around 18,000 during the Asian hours on Friday. The pair holds gains as the US Dollar (USD) finds support from growing expectations of a Federal Reserve (Fed) rate hike.
The NZD/USD pair trades in negative territory for the eighth consecutive day near 0.5635 during the Asian trading hours on Friday.
The AUD/USD pair edges lower to around 0.6900 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Australian Dollar (AUD) on the expectation of US rate hikes later this year.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, pares its recent losses from the previous day and is trading around 101.50 during the Asian hours on Friday.
