The US dollar eased on Tuesday
(MENAFN- MENAFNEditorial)
Hello MENA FN
Greetings, trust this email finds you well.
Kindly find " Today's markets analysis on behalf of Thadeu Dos Santos, Regional Director at Infinox
The US dollar eased on Tuesday as pressure across global bond markets faded and Treasury yields moved lower. Softer crude prices, supported by expectations of additional Russian diesel exports, also helped ease inflation concerns. However, persistent tensions in the Middle East could limit the downside in oil prices and prevent inflation concerns from receding significantly, providing some support to Treasury yields.
Wednesd’y’s inflation report is likely to be the key near-term driver. Headline CPI is expected to accelerate to 3.6% year-on-year, while core inflation is forecast to rise to 2.5%. An increase in the core measure would break a sequence of recent declines and reinforce concerns that underlying inflation remains elevated.
Markets continue to price a strong probability of another interest-rate increase before year-end, even as an October move is now considered less likely. A stronger inflation print could reinforce expectations for December tightening and lift yields and the dollar, while softer data could make another move less certain. Longer-dated Treasury yields may prove more resilient, however, as concerns over the US fiscal outlook continue to support borrowing costs at the long end.
The dollar could also face some pressure from other major currencies as tightening expectations remain in place outside the US. The Bank of Japan raised its policy rate to 1.25% in September and has indicated that further gradual tightening remains possible. In the euro area, markets also continue to expect another ECB rate increase before year-end.
Appreciate your cooperation in publishing the analysis.
For any inquiry or more information please do not hesitate to contact us.
Regards
Hello MENA FN
Greetings, trust this email finds you well.
Kindly find " Today's markets analysis on behalf of Thadeu Dos Santos, Regional Director at Infinox
The US dollar eased on Tuesday as pressure across global bond markets faded and Treasury yields moved lower. Softer crude prices, supported by expectations of additional Russian diesel exports, also helped ease inflation concerns. However, persistent tensions in the Middle East could limit the downside in oil prices and prevent inflation concerns from receding significantly, providing some support to Treasury yields.
Wednesd’y’s inflation report is likely to be the key near-term driver. Headline CPI is expected to accelerate to 3.6% year-on-year, while core inflation is forecast to rise to 2.5%. An increase in the core measure would break a sequence of recent declines and reinforce concerns that underlying inflation remains elevated.
Markets continue to price a strong probability of another interest-rate increase before year-end, even as an October move is now considered less likely. A stronger inflation print could reinforce expectations for December tightening and lift yields and the dollar, while softer data could make another move less certain. Longer-dated Treasury yields may prove more resilient, however, as concerns over the US fiscal outlook continue to support borrowing costs at the long end.
The dollar could also face some pressure from other major currencies as tightening expectations remain in place outside the US. The Bank of Japan raised its policy rate to 1.25% in September and has indicated that further gradual tightening remains possible. In the euro area, markets also continue to expect another ECB rate increase before year-end.
Appreciate your cooperation in publishing the analysis.
For any inquiry or more information please do not hesitate to contact us.
Regards
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment