Come closer Dollar From the highest level in two and a half months, Tuesday, while it is hot gold Near a higher high, in exchange for a decline in prices
Oil.
The dollar neared its highest level in two-and-a-half months on Tuesday, amid expectations that the Federal Reserve will take a more deliberate approach to cutting interest rates, while tensions among investors investment with the close competition in the US presidential elections taking place. next month.
The dollar, boosted by higher Treasury yields, continued to weigh on the yen, euro and pound, a trend that has picked up in recent weeks as data showed that … Economy The US economy is still in good shape, which has led to a reduction in bets on a rapid and significant reduction in interest rates in the United States.
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On Monday, four Federal Reserve policymakers expressed their support for further cuts in interest rates, although they disagreed on the pace of the cuts and the target range.
The differing views give us an insight into what we can expect at the next monetary policy meeting at the Federal Reserve on November 6-7.
Markets see an 89 percent chance of a 25-basis rate cut at the next meeting, compared with a 50 percent chance last month.
The dollar index, which measures the performance of the US dollar against six major currencies, reached 103.93 in Asian trade, after reaching 104.02 points on Monday, the highest level since August 1. The index is on track to gain more than three percent this month.
The euro reached $1.08205 in the latest trade, nearing its lowest level since August 2nd, and the British pound reached $1.3006, near its lowest level since August 20th.
With the US presidential elections approaching in two weeks, the dollar has been supported by the growing chances of former President Donald Trump winning the November 5 elections. , as Trump’s proposed tariff and tax policies are likely to keep US interest rates high.
However, the contest is still very close and the outcome of the election is unpredictable, and analysts expect volatility as investors gauge the situation ahead of the results.
“With Trump’s victory, we can expect a relatively turbulent environment with a lot of uncertainty,” strategists at Pine Bridge Investments said in a note.
The note said: “While Trump’s victory may be seen as an unfavorable situation in the short term for markets, the picture looks very different in the long term… status quo’ and current policies , as it involves a slower process of policy transfer.”
In Asian trade, the yield on the standard 10-year US Treasury bond rose to its highest level since July 26 and was last traded at 4.218 percent.
The increase in yields affected the Japanese currency, which is very sensitive to movements in Treasury bonds. On Tuesday, the yen hit its lowest level in nearly three months at 151.10 against the dollar.
The decline of the yen comes at a time when Japan is preparing to hold general elections on October 27. While opinion polls vary on how many seats the ruling Liberal Democratic Party will win, markets were optimistic that he, along with junior coalition partner Komeito, would prevail .
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Gold is nearing an all-time high
Gold prices rose on Tuesday, approaching the highest level reached in the previous session, amid uncertainty over the US elections, ongoing tensions in the Middle East, and expectations from major central banks that ‘ lower interest rates.
By 05:45 GMT, gold in immediate trading rose 0.5 percent to $2,732.44 an ounce. U.S. gold futures rose 0.3 percent to $2,746.20 an ounce.
Gold is considered a hedge in times of political and geopolitical volatility, and it jumped to an all-time high on Monday, recording $2,740.37 an ounce, and has risen more than 32 percent since the beginning of this year.
As for interest rates, CME’s “Fed Watch” market research tool revealed that traders now expect 89 percent that the US central bank will cut interest rates by 25 basis points in November.
As for other precious metals, silver in spot transactions increased 0.9 percent to $34.05 an ounce after reaching their highest levels since late 2012 in the last session.
Platinum rose 0.6 percent to $1,006.87 an ounce.
Palladium rose 1.1 percent to $1,062.59 an ounce.
Oil prices are falling
Oil prices fell on Tuesday, recovering from the previous day when US Secretary of State Antony Blinken renewed his efforts for a Middle East truce and a decline in demand in China. ‘ continue to weigh on the market.
Brent crude futures for December delivery fell 26 cents, or 0.3 percent, to $74.03 a barrel by 00:46 GMT. US West Texas crude futures for delivery in November two years fell to $70.54 a barrel on the last day of the contract as the month closest to maturity.
West Texas Intermediate crude futures, the most widely traded for December, lost 23 cents, or 0.3 percent, to $69.81 a barrel.
Brent and West Texas Intermediate crude contracts settled at an increase of around two percent, on Monday, compensating for some of the decline seen last week of more than seven percent, with the ongoing fight in the Middle East and the market’s concern about the expected Israelis. response to Iran, which could disrupt oil supplies.
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Blinken traveled to the Middle East on Monday, trying to revive talks aimed at ending the Gaza war and ending the conflict in Lebanon.
Meanwhile, China on Monday lowered its benchmark lending rates as expected after cutting other interest rates last month as part of a package of stimulus measures to revive the economy. animation
The move comes after data showed on Friday that China’s economy grew at its slowest pace in the third quarter since early 2023, fueling growing concerns about oil demand.
The head of the International Energy Agency said on Monday that oil demand growth in China is expected to remain weak in 2025 despite Beijing’s recent stimulus measures.
2024-10-22 14:34:00
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