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Dollar dips as recent rally loses momentum following economic data

25 Oct,2024
Dollar dips as recent rally loses momentum following economic data

The greenback dipped for the second consecutive session on Friday, although the recent surge has lost momentum, the dollar is still on course for its fourth consecutive week of gains, thanks to data this week that maintained stable expectations for Federal Reserve interest rates.

The dollar was set to achieve its fourth consecutive week of gains, driven by a series of positive economic data that have eased concerns about the extent and pace of the Fed's rate cuts, contributing to rising U.S. Treasury yields. Investors are now turning their attention to the pivotal NFP report scheduled for next week.

The dollar index that gauges the greenback versus its major pairs slid by 0,02% to 104.03.

The dollar has gained from increased market expectations that Republican candidate and former President Donald Trump will win next month, a victory that could lead to inflationary policies like tariffs.

EUR/USD edged up 0.02% at $1.083.

A Friday survey indicated that German business sentiment improved more than anticipated, ending four months of declines and providing hope for economic relief amid industrial challenges and weak global demand.

 ECB President Christine Lagarde stated that euro zone inflation is "well on track" to reach the ECB's 2% target next year, reaffirming the bank's latest guidance.

GBP/USD ticked up by 0.13% to $1.2989.

USD/JPY edged up by 0.13% to 152.02.

The BOJ is set to meet next week, where it is anticipated to uphold its ultra-low interest rates while likely signaling a shift toward a less dovish policy stance, given decreasing concerns about a U.S. recession and the need to prevent speculators from further weakening the yen.

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