Dollar Extends Gains As Aggressive Rate Cut Bets Drop

RTTNews | 15 hari yang lalu
Dollar Extends Gains As Aggressive Rate Cut Bets Drop

(RTTNews) - The U.S. dollar extended gains against most of its major counterparts on Friday amid bets interest rates will stay mostly higher during the upcoming term of Donald Trump as his policies are likely to elevate upside risks to inflation and push rates higher.

Trump has proposed tax cuts and tariffs on imported goods in his election campaign.

On Thursday, the Federal Reserve lowered the interest rate by 25 basis points. In his post meeting press conference, Fed Chair Jerome Powell stressed that rates are not on "any preset course" and that the central bank will make future decisions "meeting by meeting" to deal with the risks to both sides of the dual mandate.

However, with Trump returning to power, expectations of further interest rate cuts in 2025 have come down a bit.

In economic news today, preliminary data released by the University of Michigan showed consumer sentiment has improved by more than expected in the month of November.

The University of Michigan said its consumer sentiment index climbed to 73.0 in November from 70.5 in October. Economists had expected the index to inch up to 71.0. With the bigger than expected increase, the consumer sentiment index reached its highest level since hitting 77.2 in April.

On the inflation front, the report said year-ahead inflation expectations slipped to 2.6% in November from 2.7% in October, hitting the lowest level since December 2020.

Long-run inflation expectations, on the other hand, inched up to 3.1% in November from 3% in October, remaining modestly elevated relative to the range of readings seen in the two years pre-pandemic.

The dollar index climbed to 105.21 and despite paring some gains subsequently, remained firm at 104.95, up more than 0.4% from the previous close.

Against the Euro, the dollar firmed to 1.0719 from 1.0804, and against Pound Sterling, it strengthened to 1.2918 from 1.2987.

Against the Japanese currency, the dollar weakened to 152.62 yen from Thursday's closing value of 152.94 yen. The dollar firmed against the Aussie to 0.6583 from 0.6681.

The Swiss franc drifted lower against the greenback to 0.8755, while the Loonie weakened to 1.3914 a unit of greenback.

read more
TSX Closes At New Record High

TSX Closes At New Record High

The Canadian market closed modestly higher on Friday, lifted by gains in industrials and energy stocks. Positive reaction to the nation's retails data and the recent announcement of a mini stimulus package contributed to the upside.
RTTNews | 1 hari yang lalu
Swiss Stocks Close On Strong Note

Swiss Stocks Close On Strong Note

Swiss stocks closed on a bright note on Friday, in line with markets across Europe, as weak manufacturing and services sector data from major European countries such as the U.K., Germany and France raised hopes that central banks will cut interest rates further to help revive growth.
RTTNews | 1 hari yang lalu
Canadian Market Modestly Higher In Cautious Trade

Canadian Market Modestly Higher In Cautious Trade

The Canadian market is modestly higher a little past noon on Friday with stocks turning in a mixed performance in cautious trade. Investors are digesting the latest economic data from Canada and the U.S., while continuing to follow the developments on the geopolitical front.
RTTNews | 1 hari yang lalu
U.S. Consumer Sentiment Improves Less Than Previously Estimated In November

U.S. Consumer Sentiment Improves Less Than Previously Estimated In November

Consumer sentiment in the U.S. improved less than previously estimated in the month of November, according to revised data released by the University of Michigan on Friday. The University of Michigan said its consumer sentiment index for November was downwardly revised to 71.8 from the preliminary reading of 73.0.
RTTNews | 1 hari yang lalu
Bay Street Seen Opening Higher

Bay Street Seen Opening Higher

The Canadian market may open higher on Friday, with materials shares finding some support on firm metal prices. Investors will also be reacting to Canadian retails sales data and U.S. producer prices report.
RTTNews | 1 hari yang lalu
Regulator CFPB To Consider Apple Pay, Other Digital Payment Apps As Banks

Regulator CFPB To Consider Apple Pay, Other Digital Payment Apps As Banks

The US Consumer Financial Protection Bureau or CFPB has finalized a rule to supervise Apple Inc. and other major technology firms that offer digital funds transfer and payment wallet apps, and treat them more like banks. In a statement, the US consumer watchdog said the rule on federal oversight of popular digital payment apps by the largest non-bank companies is aimed to protect personal data...
RTTNews | 1 hari yang lalu