Dollar Loses Ground Against Major Rivals Ahead Of Key Economic Data

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(RTTNews) - The U.S. dollar stayed mostly weak on Wednesday as traders awaited crucial U.S. inflation data, due later in the week.

Data on Q2 GDP is due on Thursday and PCE data - the Fed's favored measure of inflation - on Friday.

The report on personal income and spending in June, which includes readings on inflation said to be preferred by the Federal Reserve, could have a significant impact on the outlook for interest rates.

In U.S. economic news today, a report from the Commerce Department said new home sales fell by 0.6% to an annual rate of 617,000 in June after plummeting by 14.9% to a revised rate of 621,000 in May.

Economists had expected new home sales to surge by 3.4% to a rate of 640,000 from the 619,000 originally reported for the previous month.

With the unexpected decline, new home sales slumped to their lowest level since hitting an annual rate of 611,000 in November 2023.

The dollar index, which dropped to 104.12, recovered to 104.37, but still remained below the previous close.

Against the Euro, the dollar firmed to 1.0842, and against Pound Sterling it was flat at 1.2908. The dollar strengthened to 153.96 yen against the Japanese currency, and weakened to 0.6583 against the Aussie.

The dollar shed value against Swiss franc, dropping to CHF 0.8853 a unit.

Against the Loonie, the dollar firmed to C$ 1.3810 from C$ 1.3786. The Bank of Canada reduced its key policy rate further amid easing inflationary pressures.

The BoC said it has reduced its target for the overnight rate by 25 basis points to 4.5%, with the bank rate at 4.75% and the deposit rate at 4.5%.

The Canadian central bank said the decision to lower rates for the second straight meeting came as broad price pressures continue to ease and inflation is expected to move closer to 2%.

TSX Ends Notably Lower As Stocks Drop On Interest Rate Concerns

The Canadian market closed notably lower on Friday, hurt by rising bond yields, and fading optimism about interest rate cuts by the Federal Reserve after data showed stronger-than-expected growth in U.S. non-farm payroll employment. Canadian employment data too came in stronger than expected, reducing prospects of any significant monetary easing by the Bank of Canada.

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Dollar Climbs Higher After Buoyant Jobs Data

The U.S. dollar firmed against its major counterparts on Friday amid fading hopes of further reductions in interest rates after data from the Labor Department showed stronger-than-expected growth in non-farm payroll employment in the month of December.

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U.S. Stocks Close Sharply Lower As Strong Jobs Data Raises Interest Rate Concerns

U.S. stocks tumbled on Friday due to heavy selling across the board as buoyant non-farm payroll data raised concerns that the Federal Reserve will likely hold interest rates at current levels or slow down the pace of reductions. Rising bond yields hurt as well.

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Swiss Market Ends Notably Lower

The Switzerland market settled notably lower on Friday, in line with markets across Europe, as upbeat U.S. jobs data raised concerns that the Federal Reserve will likely hold interest rates unchanged from current levels, or go slow on interest rate cuts this year. Data showing an increase in Swiss unemployment weighed as well.

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U.S. Dollar Firms As Strong Jobs Data Dampens Rate Cut Hopes

The U.S. dollar climbed against its most major counterparts in the New York session on Friday, as stronger-than-expected jobs data for December strengthened expectations that the Federal Reserve will hold rates steady for sometime.

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European Stocks Close Lower As Strong U.S. Jobs Data Fuels Interest Rate Concerns

European stocks closed lower on Friday after stronger-than-expected U.S. jobs data raised concerns that the Federal Reserve will hold interest rates at current levels for longer. Higher Euro zone bond yields, and potential tariff hikes by the U.S. weighed as well on investor sentiment.

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Canadian Stocks Tumble As Upbeat Jobs Data Raises Interest Rate Concerns

Canadian stocks are down sharply on Friday with stronger-than-expected U.S. jobs data raising concerns that the Federal Reserve will likely hold interest rates unchanged from current levels for sometime. Also, a buoyant Canadian employment reports has dimmed the prospects for further easing by the Canadian central bank for now.

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U.S. Consumer Sentiment Edges Lower In January As Inflation Expectations Surge

Consumer sentiment in the U.S. has unexpectedly seen a modest deterioration in the month of January, according to preliminary data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index edged down to 73.2 in January from 74.0 in December. Economists had expected the index to inch up to 74.5.

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EURUSD	1.02441	GBPUSD	1.22097	AUDUSD	0.61461
USDJPY	157.737	USDCAD	1.44282	USDCHF	0.91664