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Friday, June 21, 2024

The Dollar Remains Steady to Start The Week

The Dollar Remains Steady

The dollar made a steady start to the week as investors awaited inflation data from the U.S., Europe, and Japan that could provide guidance on global interest rate expectations. Foreign exchange markets have been focused on chasing yields in recent months, selling low-rate currencies, and supporting the dollar.

Several major currency pairs were locked in tight ranges on Monday. The euro traded in the middle of its range of over a year against the dollar at $1.0848. German inflation data due out on Wednesday and broader euro zone readings on Friday will be watched for confirmation of an expected interest rate cut by the European Central Bank next week.

The British pound tested its monthly high against the dollar of $1.2739, while the Australian and New Zealand dollars pulled back from recent peaks. The Aussie was at $0.6631 and the kiwi at $0.6126 as markets dialed back expectations for U.S. interest rate cuts.

Investors will pay close attention to the core U.S. personal consumption expenditures price index due on Friday for guidance on inflation. A surprise in either direction could move currency markets as the data provides insight into the Federal Reserve’s policy outlook.

The dollar had weakened recently but found support last week from stronger-than-expected U.S. purchasing managers’ index surveys. However, the focus remains on inflation and whether it reflects broader consumer sentiment shifts. With interest rate uncertainty persisting globally, investors continue chasing higher yields, putting pressure on low-yield currencies.

Publisher and editor of LJLNews. I am a Stock Market enthusiast, with an interest for politics. I hope you enjoy reading the articles! Contact me at: Lazaruslucas@ljlnews.com

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