* U.S. manufacturing sector remains in contraction territory * Focus on Fed's Powell's speech * U.S. rate futures price in 56% chance of March rate cu
* U.S. manufacturing sector remains in contraction territory * Focus on Fed’s Powell’s speech * U.S. rate futures price in 56% chance of March rate cut (Adds new comment, bullets, byline, NEW YORK dateline, FX table; updates prices) By Iain Withers and Gertrude Chavez-Dreyfuss LONDON/NEW YORK, Dec 1 (Reuters) – The dollar rose for a third straight day on Friday, while the euro extended steep overnight losses, as traders looked ahead to a speech later in the day by U.S. Federal Reserve Chair Jerome Powell. The greenback, however, pared gains after data showed the U.S. manufacturing sector remained weak in November. The Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 46.7 last month. It was the 13th consecutive month that the PMI stayed below 50, which indicates contraction in manufacturing. Post-manufacturing data, U.S. rate futures on Friday priced in a 56% chance of a rate cut by the March meeting next year, compared to 43% late on Thursday, according to the CME’s FedWatch tool. For the May meeting, U.S. rate cut chances surged to 84%, from about 76% the day before. Softer inflation data in both the United States and the euro zone on Thursday reinforced expectations that both central banks might be done raising interest rates in their battle against price rises and led traders to bet on earlier cuts next year. Goldman Sachs on Friday said it now expected the European Central Bank to deliver its first rate cut in the second quarter of 2024, compared to an earlier forecast of a cut in the third quarter of next year. Investors will have their sights trained on a talk due to be given by the Fed’s Powell later on Friday for any clues about the future path of interest rates in the U.S. “That would be the Fed’s last opportunity to set the record straight for the meeting before the blackout period,” said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto. “So I think you’re just seeing a paring back of post-CPI (consumer price index) decline in the dollar.” Currency movements were more muted on Friday, after month-end trades on Thursday contributed to bigger swings, analysts said. The U.S. dollar index – which tracks the currency against six major counterparts – was last up 0.2% at 103.69, after clocking its weakest monthly performance in a year in November. Mixed economic data across Europe failed to set the tone for the euro, with a survey showing a downturn in euro zone manufacturing activity eased slightly last month but remained deeply in the red. Britain also reported contraction in manufacturing, but an improved reading for a third straight month. The euro was last down 0.4% at $1.0842, while sterling was flat at $1.2617. Against the yen, the dollar slipped 0.1% to 148.09 yen. The yen was on course for its third straight week of gains, pulling it away from the near 33-year low of 151.92 per dollar touched in the middle of November. Rising expectations of the Bank of Japan abandoning its ultra-easy monetary policy next year along with a drop in U.S. yields have buoyed the Asian currency in the past few weeks. In cryptocurrencies, bitcoin continued to strengthen, rising to a fresh 18-month high of $38,839. It was last up 1.9% at $38,401. ======================================================== Currency bid prices at 10:24AM (1524 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 103.5200 103.4500 +0.09% 0.029% +103.7200 +103.2600 Euro/Dollar $1.0853 $1.0889 -0.32% +1.29% +$1.0912 +$1.0842 Dollar/Yen 147.3750 148.2100 -0.53% +12.44% +148.3400 +147.3500 Euro/Yen 159.94 161.35 -0.87% +14.00% +161.7700 +159.9500 Dollar/Swiss 0.8734 0.8753 -0.23% -5.55% +0.8768 +0.8731 Sterling/Dollar $1.2639 $1.2627 +0.12% +4.54% +$1.2675 +$1.2615 Dollar/Canadian 1.3504 1.3559 -0.41% -0.34% +1.3564 +1.3496 Aussie/Dollar $0.6639 $0.6605 +0.57% -2.56% +$0.6643 +$0.6600 Euro/Swiss 0.9478 0.9526 -0.50% -4.21% +0.9545 +0.9479 Euro/Sterling 0.8585 0.8624 -0.45% -2.93% +0.8634 +0.8586 NZ $0.6177 $0.6155 +0.39% -2.69% +$0.6192 +$0.6152 Dollar/Dollar Dollar/Norway 10.7140 10.8270 -0.90% +9.33% +10.8050 +10.7300 Euro/Norway 11.6309 11.7648 -1.14% +10.84% +11.7760 +11.6258 Dollar/Sweden 10.4538 10.4994 -0.62% +0.44% +10.5200 +10.4297 Euro/Sweden 11.3463 11.4168 -0.62% +1.76% +11.4359 +11.3442 (Reporting by Iain Withers in London and Gertrude Chavez-Dreyfuss in New York; Additional reporting by Ankur Banerjee in Singapore; Editing by Gareth Jones and Toby Chopra)
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FOREX-US dollar rises for 3rd day ahead of Fed’s Powell comments
* U.S. manufacturing sector remains in contraction territory * Focus on Fed's Powell's speech * U.S. rate futures price in 56% chance of March rate cu
* U.S. manufacturing sector remains in contraction territory * Focus on Fed’s Powell’s speech * U.S. rate futures price in 56% chance of March rate cut (Adds new comment, bullets, byline, NEW YORK dateline, FX table; updates prices) By Iain Withers and Gertrude Chavez-Dreyfuss LONDON/NEW YORK, Dec 1 (Reuters) – The dollar rose for a third straight day on Friday, while the euro extended steep overnight losses, as traders looked ahead to a speech later in the day by U.S. Federal Reserve Chair Jerome Powell. The greenback, however, pared gains after data showed the U.S. manufacturing sector remained weak in November. The Institute for Supply Management (ISM) said its manufacturing PMI was unchanged at 46.7 last month. It was the 13th consecutive month that the PMI stayed below 50, which indicates contraction in manufacturing. Post-manufacturing data, U.S. rate futures on Friday priced in a 56% chance of a rate cut by the March meeting next year, compared to 43% late on Thursday, according to the CME’s FedWatch tool. For the May meeting, U.S. rate cut chances surged to 84%, from about 76% the day before. Softer inflation data in both the United States and the euro zone on Thursday reinforced expectations that both central banks might be done raising interest rates in their battle against price rises and led traders to bet on earlier cuts next year. Goldman Sachs on Friday said it now expected the European Central Bank to deliver its first rate cut in the second quarter of 2024, compared to an earlier forecast of a cut in the third quarter of next year. Investors will have their sights trained on a talk due to be given by the Fed’s Powell later on Friday for any clues about the future path of interest rates in the U.S. “That would be the Fed’s last opportunity to set the record straight for the meeting before the blackout period,” said Erik Bregar, director, FX & precious metals risk management, at Silver Gold Bull in Toronto. “So I think you’re just seeing a paring back of post-CPI (consumer price index) decline in the dollar.” Currency movements were more muted on Friday, after month-end trades on Thursday contributed to bigger swings, analysts said. The U.S. dollar index – which tracks the currency against six major counterparts – was last up 0.2% at 103.69, after clocking its weakest monthly performance in a year in November. Mixed economic data across Europe failed to set the tone for the euro, with a survey showing a downturn in euro zone manufacturing activity eased slightly last month but remained deeply in the red. Britain also reported contraction in manufacturing, but an improved reading for a third straight month. The euro was last down 0.4% at $1.0842, while sterling was flat at $1.2617. Against the yen, the dollar slipped 0.1% to 148.09 yen. The yen was on course for its third straight week of gains, pulling it away from the near 33-year low of 151.92 per dollar touched in the middle of November. Rising expectations of the Bank of Japan abandoning its ultra-easy monetary policy next year along with a drop in U.S. yields have buoyed the Asian currency in the past few weeks. In cryptocurrencies, bitcoin continued to strengthen, rising to a fresh 18-month high of $38,839. It was last up 1.9% at $38,401. ======================================================== Currency bid prices at 10:24AM (1524 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 103.5200 103.4500 +0.09% 0.029% +103.7200 +103.2600 Euro/Dollar $1.0853 $1.0889 -0.32% +1.29% +$1.0912 +$1.0842 Dollar/Yen 147.3750 148.2100 -0.53% +12.44% +148.3400 +147.3500 Euro/Yen 159.94 161.35 -0.87% +14.00% +161.7700 +159.9500 Dollar/Swiss 0.8734 0.8753 -0.23% -5.55% +0.8768 +0.8731 Sterling/Dollar $1.2639 $1.2627 +0.12% +4.54% +$1.2675 +$1.2615 Dollar/Canadian 1.3504 1.3559 -0.41% -0.34% +1.3564 +1.3496 Aussie/Dollar $0.6639 $0.6605 +0.57% -2.56% +$0.6643 +$0.6600 Euro/Swiss 0.9478 0.9526 -0.50% -4.21% +0.9545 +0.9479 Euro/Sterling 0.8585 0.8624 -0.45% -2.93% +0.8634 +0.8586 NZ $0.6177 $0.6155 +0.39% -2.69% +$0.6192 +$0.6152 Dollar/Dollar Dollar/Norway 10.7140 10.8270 -0.90% +9.33% +10.8050 +10.7300 Euro/Norway 11.6309 11.7648 -1.14% +10.84% +11.7760 +11.6258 Dollar/Sweden 10.4538 10.4994 -0.62% +0.44% +10.5200 +10.4297 Euro/Sweden 11.3463 11.4168 -0.62% +1.76% +11.4359 +11.3442 (Reporting by Iain Withers in London and Gertrude Chavez-Dreyfuss in New York; Additional reporting by Ankur Banerjee in Singapore; Editing by Gareth Jones and Toby Chopra)
finance.yahoo.com
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