News: USD 2022-12-05 16:31

Dollar soft as China reopening hopes boost risk sentiment

The dollar struggled to gain a foothold on Monday and was languishing at five-month lows as traders looked past stronger than anticipated U.S. jobs data, while growing hopes of China reopening boosted risk sentiment.

The dollar index which measures the currency against six major peers including the yen and euro, was down 0.16% at 104.37 and hit its lowest since June 28.

The index fell 1.4% last week.

The dollar initially jumped on Friday after U.S. data showed that employers added 263,000 jobs in November, well above estimates of 200,000, but gave up the gains as traders booked profits, with some of the Fed speakers allaying market concerns.

“We move past U.S. payrolls with only a momentary shake for risky markets,” said Chris Weston, head of research at Pepperstone, noting that the data supported the ‘soft landing’ argument and is unlikely to change the Fed’s course, where a 50 basis point hike next week is still the firm default position.

“With limited data to drive this week and no Fed speakers, the market may start to think for itself and look at massaging exposures ahead of next week,” Weston added.

Investor focus will firmly be on the U.S. consumer price inflation data due on Dec. 13, one day before the Fed concludes its two-day meeting.

The U.S. central bank is expected to increase rates by an additional 50 basis points at the meeting. Fed funds futures traders are now pricing for the Fed’s benchmark rate to peak at 4.92% in May.

Also, weighing on the dollar was growing hopes of China slowly reopening, with more Chinese cities announcing an easing of coronavirus curbs on Sunday.

The Australian dollar rose 0.2% to $0.6805. The euro was up 0.25% to $1.0564, having gained 1.3% last week.
Recent events
2023-01-25 14:03
News 404
German Ifo index improves again in January

Germany’s most prominent indicator has improved for the fourth month in a row, but the renewed optimism is still based...

2023-01-18 18:56
News 777
US production plunge adds to fears we could already be in recession

Coming on the back of the weakness in retail sales, the steep drop in industrial production and news of more job lay-off...

2023-01-18 18:54
News 789
Fed reaches the end game as US data disappoints yet again

Widespread falls in key retail sales components and broadening signs that inflation pressures are rapidly moderating mea...

2023-01-18 18:53
News 739
Bank of Japan defies market speculation; keeps policy steady

In keeping its key rate and yield curve control policy unchanged at today's meeting, the Bank of Japan probably wanted t...

2023-01-18 18:51
News 647
Jump in UK services inflation provides ammunition to BoE hawks

Headline inflation has peaked but pressure from the service sector continues to build. That's likely to tip the balance ...

2023-01-13 19:09
News 769
German economy still defies recession

The German economy grew by 1.9% in 2022. This implies a stagnating, not contracting, economy in the fourth quarter. Will...

2023-01-13 19:06
News 816
China’s export contraction means more infrastructure spending to support recovery

China's exports and imports continued to contract in December. This signals weak external demand which could hamper the ...

2023-01-09 14:37
News 946
German industry stagnates at too low level

Industrial activity in November provided more evidence that the economy did not fall off a cliff in the fourth quarter b...

2023-01-05 11:46
News 1444
German exports weaken further in November

Exports continue to weaken, suggesting that recession fears are real

German export weakness continues. Ge...

2023-01-04 22:51
News 1547
US jobs numbers could soon start to turn

Today’s data offers further further evidence that labour demand remains strong despite clear signs of a weakening econ...

2023-01-04 14:30
News 1495
German inflation drops to 8.6% in December

Lower oil and gasoline prices and the first phase of the government's gas price cap have pushed down headline inflation ...

2022-12-31 15:36
News 1741
BOJ considering raising inflation forecasts to near 2% target -Nikkei

The Bank of Japan (BOJ) is considering raising its inflation forecasts in January to show price growth close to its 2% t...

2022-12-30 12:04
News 851
South Korea: CPI inflation unchanged in December

Entering 2023, we expect headline CPI to head down to 4%. Gasoline prices and utility fees are set to rise meaningfully ...