The dollar is at its lowest level in 8 months… a decline that will not stop even after the Federal Reserve meeting! Powered by

The dollar is at its lowest level in 8 months… a decline that will not stop even after the Federal Reserve meeting! Powered by
The dollar is at its lowest level in 8 months… a decline that will not stop even after the Federal Reserve meeting! Powered by

© Reuters. – The dollar held near an eight-month low against its peers on Thursday, as a downbeat US corporate earnings season stoked recession fears, and as traders remained on guard ahead of a series of central bank meetings next week.

Things not to miss.. How to make money from gold trading?

The year 2023 is the year of gold, and the most important question is when to buy and when to sell, and how to save our money and ensure profit? And help you in solving this question trading expert d. Hisham Muhammad Younes in a free webinar presented by Saudi Investing on Tuesday, January 31 at 18:30 Riyadh time.

The focus will be on fundamental and technical analysis on MetaTrader 4.

Register here for free!

Read also

dollar now

The American dollar, which measures the greenback against a basket of currencies, rose 0.1% to 101.65, after falling as low as 101.52 earlier in the session, to test an eight-month low last week at 101.51.

Trading was thin, with Australia off for a holiday and some parts of Asia still off for the Lunar New Year.

Pessimistic trends… a continuous decline in the dollar

Earnings, downbeat guidance from US companies and a series of layoffs in the technology sector have deepened fears of a sharp economic contraction in the US, prompting investors to scale back expectations on how long the Fed will need to raise interest rates aggressively.

“There are now indications that the US economy may be slowing in a more effective way,” said economists at Wells Fargo (NYSE:WFC).

“With the Fed no longer taking charge of raising interest rates and forecasting US economic trends to worsen, we now believe that the US dollar has entered a prolonged period of decline against most foreign currencies.”

As the Policy Committee begins its two-day meeting next week, markets have priced in a 25bp rate hike, a reversal from the central bank’s 50bp and 75bp hikes last year. Which exposes the dollar to further weakness.

Before that, the Commerce Department is set to release advance estimates of US fourth-quarter GDP later on Thursday.

The dollar against the pound and the euro

Meanwhile, markets expect policy makers of the Bank of England and European Central Bank (ECB), which will also meet next week, to raise interest rates by 50 basis points. The ECB is likely to remain hawkish.

The pound was little changed at $1.2400, while falling 0.03% to $1.0911, although it remained close to the nine-month high of $1.0927 hit on Monday.


“The euro is attracting a lot of attention,” said Jarrod Kerr, chief economist at Kiwi Bank. And the eurozone “has had a proper winter…the energy crisis that people were expecting is not over yet.”


dollar against other currencies

Elsewhere, the Canadian dollar was last trading at 1.3399 against the US dollar, after the Bank of Canada on Wednesday raised its key interest rate to 4.5%, but became the first major central bank to fight global inflation to say it will likely halt further increases in the dollar. present time.

Also, it rose 0.2% to $0.7117, on higher expectations that the Reserve Bank of Australia has more work to do to raise interest rates, after shock data on Wednesday showed that Australian inflation rose to a 33-year high in the past quarter.

The New Zealand dollar also rose 0.1% to $0.6486, after falling 0.43% in the previous session as New Zealand’s fourth-quarter annualized inflation fell short of central bank expectations.

As for Asia, it increased by 0.2%, to 129.32 per dollar.

A summary of views at their meeting on Thursday showed that BoJ policymakers discussed the inflation outlook at their meeting in January, with some warning that the rise in wages could take time.

At that meeting, the Bank of Japan kept ultra-low interest rates unchanged, but strengthened its monetary policy tool to prevent the 10-year yield from breaching the new 0.5% cap. Its decision defied market expectations of further monetary policy adjustments.

Stay informed about the market..and keep the news of the economy always close to you

Investing offers a comprehensive economic service of live data, streaming news, real-time alerts, private portfolios and tools to track your investment on our website or app.

You can follow us on all social media:






PREV The Protestant Church in Turkey condemns the burning of the Koran in Sweden
NEXT A young man was injured after falling from the third floor in the Eastern Province