Dollar finds a footing after tumbling on weak economic data
The dollar ticked up on Tuesday after falling to its lowest against the euro, sterling and Swiss franc since mid-March overnight as signs of a softening U.S. economy boosted the case for earlier Federal Reserve interest rate cuts.
Investors were looking towards U.S. job openings data later in the day, which will provide an insight into the state of the labour market and could push the U.S. currency lower.
The euro rose as high as $1.0916 for the first time since March 21 in the Asian trading session, but gave up some ground to stand 0.2% lower at $1.0886.
Sterling hit its highest since mid-March too at $1.2818 but was also last down 0.2%.
As the U.S. currency found a footing, the dollar index was up 0.12% at 104.16, having fallen to its lowest since mid-April overnight at 103.99.
Data on Monday showed a second straight month of slowdown in manufacturing activity and an unexpected decline in construction spending, causing the dollar index to fall around 0.6%.
Back in Europe, the dollar fell 0.2% to its lowest against the Swiss franc since mid-March at 0.8938 francs. Data showed Swiss inflation held steady at 1.4% year-on-year in May.
Markets increased the chances of a rate cut in September to around 59.1% on Tuesday, according to LSEG data on derivatives prices. That compares with odds of around 55% on Friday and slightly below 50% earlier last week.
Reuters
The dollar ticked up on Tuesday after falling to its lowest against the euro, sterling and Swiss franc since mid-March overnight as signs of a softening U.S. economy boosted the case for earlier Federal Reserve interest rate cuts.
Investors were looking towards U.S. job openings data later in the day, which will provide an insight into the state of the labour market and could push the U.S. currency lower.
The euro rose as high as $1.0916 for the first time since March 21 in the Asian trading session, but gave up some ground to stand 0.2% lower at $1.0886.
Sterling hit its highest since mid-March too at $1.2818 but was also last down 0.2%.
As the U.S. currency found a footing, the dollar index was up 0.12% at 104.16, having fallen to its lowest since mid-April overnight at 103.99.
Data on Monday showed a second straight month of slowdown in manufacturing activity and an unexpected decline in construction spending, causing the dollar index to fall around 0.6%.
Back in Europe, the dollar fell 0.2% to its lowest against the Swiss franc since mid-March at 0.8938 francs. Data showed Swiss inflation held steady at 1.4% year-on-year in May.
Markets increased the chances of a rate cut in September to around 59.1% on Tuesday, according to LSEG data on derivatives prices. That compares with odds of around 55% on Friday and slightly below 50% earlier last week.
Reuters
The dollar ticked up on Tuesday after falling to its lowest against the euro, sterling and Swiss franc since mid-March overnight as signs of a softening U.S. economy boosted the case for earlier Federal Reserve interest rate cuts.
Investors were looking towards U.S. job openings data later in the day, which will provide an insight into the state of the labour market and could push the U.S. currency lower.
The euro rose as high as $1.0916 for the first time since March 21 in the Asian trading session, but gave up some ground to stand 0.2% lower at $1.0886.
Sterling hit its highest since mid-March too at $1.2818 but was also last down 0.2%.
As the U.S. currency found a footing, the dollar index was up 0.12% at 104.16, having fallen to its lowest since mid-April overnight at 103.99.
Data on Monday showed a second straight month of slowdown in manufacturing activity and an unexpected decline in construction spending, causing the dollar index to fall around 0.6%.
Back in Europe, the dollar fell 0.2% to its lowest against the Swiss franc since mid-March at 0.8938 francs. Data showed Swiss inflation held steady at 1.4% year-on-year in May.
Markets increased the chances of a rate cut in September to around 59.1% on Tuesday, according to LSEG data on derivatives prices. That compares with odds of around 55% on Friday and slightly below 50% earlier last week.
Reuters
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Dollar finds a footing after tumbling on weak economic data
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