The dollar registers the lowest level against the euro, and gold falls from the highest level

to change Dollar In today’s trade, Wednesday, it suffered some losses after falling to the lowest levels against… euro This year, traders are waiting for reviews of US jobs data and a speech by the Chairman of the Council Federal Reserve (U.S. Central Bank) Jerome Powell.

The euro rose to $1.1132, its highest level since December, as investors increased their bets on the US Central Bank cutting interest rates. Interest This year, what reduced yield Financial bonds the US and its impact on the dollar.

The euro traded in recent trade, down 0.04% to $1.1124, due to the dollar’s advance.

The effect of fear

Some analysts attributed the decline in bond yields to current worries about the economy and worries about revised non-farm payrolls data in the United States. making Treasury bonds less attractive and putting pressure on the dollar.

The Bureau of Labor Statistics will release revised data for numbers from April 2023 to March 2024 later Wednesday using tax data.

The dollar index, which measures the currency’s performance against the euro, the pound sterling, the yen and three other major currencies, fell overnight to its lowest level since late December at 101.30 points , before settling at 101.44 points, at that time. preparing this report.

get up sterling It reached its highest level since July 2023 at $1.3054, but gave up some of its gains to register $1.3041.

Powell’s speech on Friday at the Federal Reserve’s Jackson Hole Economic Conference in Kansas City will be closely watched for any hints about the likely size of an interest rate cut next month, and whether it is likely in that borrowing costs will decrease at each subsequent Fed meeting.

The performance of the dollar was variable against the Japanese currency, as it fell 0.21% to 144.945 yen, and then rose 0.39% to 145.82 yen, at the time of preparing this report.

As for the Australian dollar, it fell from its one-month high of 0.6749 US dollars, which it recorded yesterday, Tuesday, and reached 0.674 US dollars in the latest transactions.

Gold heading for best performance since 2020 (Reuters)

gold

In a related context, gold prices fell today, after hitting all-time highs yesterday, as investors await the Federal Reserve meeting and Chairman Jerome Powell’s speech to find signs of an interest rate cut path.

Spot gold fell 0.17% to $2,510 an ounce, at press time, while US gold futures fell 0.18% to $2,546.

Gold was unable to hold its high despite the dollar’s decline to its lowest levels this year and the decline in US Treasury bond yields The precious metal fell from its all-time high ever at $2,531.60, which it recorded yesterday, Tuesday, but it remained above that. the level of $2,500 per ounce.

Reuters quoted Ricardo Evangelista, chief analyst at Active Trades, as saying, “At the moment, the main factor behind the silence in the markets is the state of waiting and waiting on side of many traders, ahead of the Jackson Hole conference. .”

He said, “Jerome Powell is expected to speak on Friday, and many are hoping that his speech will be the start of the Federal Reserve’s interest rate cutting cycle.

According to the CME Group’s Fed Watch tool, market participants expect a cut in interest rates at the Federal Reserve meeting in September, and they are likely to cut 71% by 25 basis points.

Gold is set for its best annual performance since 2020, as it rose to around $470, or 22% in 2024, and geopolitical tensions and uncertainty are expected to help The upcoming US presidential elections and interest rate cuts support the precious metal. and advance it to higher levels.