The dollar is looking weaker as the week closes. Many believe this is because the Federal Reserve might not raise interest rates as much as they had before. But, we’ll know more when they release important job data later today.
By morning, the Dollar Index showed the dollar was a bit down at 105.892. This means the dollar might end the week with a 0.5% drop. This would be one of the few times it dropped in the last few months.
Dollar’s Trend This Week
The dollar didn’t do too well this week. This happened after the Federal Reserve decided not to change the interest rates. Some think the Federal Reserve might not raise rates again this year. They might even lower them by the middle of 2024.
Experts say that people are expecting the Federal Reserve to take a break from changing rates. This has made the rates more stable and has made some currencies more attractive to investors.
Now, many are waiting for the release of job data for October. This data will show how the job market is doing. If the job market is strong, the Federal Reserve might decide to raise interest rates. This could make the dollar stronger.
Experts think the U.S. added 180,000 jobs in October. This is less than September. However, they believe the unemployment rate will stay the same at 3.8%. They also think people might be earning a bit more than before.
What’s Happening in England
The value of GBP/USD didn’t change much. It’s at 1.2202. The Bank of England decided not to change their interest rates. But they said they’re not planning to lower them soon because prices are rising faster than they’d like.
The Bank of England will share more about their plans and decisions later today.
The Euro’s Movement
EUR/USD went up a little to 1.0630. This means it might end the week with a 0.6% gain. People are wondering if the European Central Bank will keep their interest rates up because the economy is not doing great.
However, the bank might still decide to raise rates in the future. Even though some recent data showed the economy is not doing well, the Euro might still go up.
USD/JPY and USD/CNY went down a bit. AUD/USD went up a bit to 0.6439. This is because people think the Reserve Bank of Australia might raise their interest rates next week.