The U.S. Dollar Index Hits a New Six-Week Low This Week Focuses on Fed Officials’ Intense Speeches Investing.com

Investing.com – In European morning trading on Monday (6th), the US dollar fell slightly, falling to a six-week low, continuing last week’s decline after the Federal Reserve became less hawkish.

As of 16:57 Beijing time (04:57 a.m. Eastern Time), the U.S. dollar index futures, which measures the trend of the U.S. dollar against six trade-weighted major currencies, fell 0.14% to 104.712; the U.S. dollar index fell 0.12% to 104.90, after falling sharply in the previous week More than 1%, the largest drop since mid-July.

Benchmark U.S. Treasury yields: The U.S. 10-year Treasury bond yield was at 4.587%, and the U.S. 20-year Treasury bond yield was at 4.954%.

h2 The US dollar weakens, and the market outlook focuses on the intensive speeches of Federal Reserve officials/h2

The U.S. dollar has continued to weaken since last week’s Federal Reserve interest rate meeting, when the Fed sent a dovish signal.

The non-farm payrolls report last Friday (3rd) also supported the dovish tone. The report showed that the number of new non-farm jobs in the United States in October was lower than expected. Data suggest the U.S. labor market, a key driver of the Fed’s hawkish stance this year, is cooling further.

Fed funds futures now imply that there is about an 85% chance that the Fed has completed its rate hike cycle and an 80% chance that it will begin cutting rates next June.

Looking ahead, at least nine Fed officials will speak this week, including {{ecl-1738|| Fed Chairman Jerome Powell, who will speak twice.

h2 The euro climbs, but the economy remains weak/h2

Despite the weakness in the German economy, the euro rose 0.17% to 1.0747 against the dollar, returning to September levels. The euro’s rise is mainly due to the weakening of the dollar rather than the strengthening of the euro area’s economic strength.

Data showed that German factory orders in September reached a monthly rate of 0.2%, unexpectedly higher than the expected -1.0%, but still significantly lower than the revised 1.9% growth in August.

In addition, a survey released by the Ifo economic research institute on Monday showed that the German residential construction industry was once again hit by a large number of cancellations in October.

Klaus Wohlrabe, director of the Ifo Economic Institute, said: “The situation has been getting worse, with more and more projects experiencing setbacks due to higher interest rates and rising house prices.”

h2 Sterling strengthens, focus on UK GDP data/h2

Ahead of the release of UK GDP data later this week, the pound-dollar exchange rate edged up 0.32% to 1.2413, continuing last week’s strong rise. Last week, the Bank of England kept interest rates steady while stressing that it would not start cutting interest rates in the near future.

The Australian dollar rose 0.06% against the US dollar to 0.6515, close to a two-month high, with market expectations that the Reserve Bank of Australia will raise interest rates by 25 basis points on Tuesday. The recent rise in consumer inflation in Australia, coupled with other data showing an unexpected rise in retail sales in the third quarter, has further strengthened market expectations that inflation will persist.

In terms of other currencies, the U.S. dollar rose 0.08% against the Japanese yen to 149.50.

The U.S. dollar fell 0.38% against the onshore renminbi to 7.2727; the U.S. dollar fell 0.22% against the offshore renminbi to 7.2742. China’s 10-year government bond yield was at 2.676%.

Investors need to pay close attention to China’s trade and inflation data to be released this week to understand the latest status of the Chinese economy.

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Compiler: Liu Chuan