{"id":14943,"date":"2024-09-09T02:52:07","date_gmt":"2024-09-09T02:52:07","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=14943"},"modified":"2024-09-09T02:52:07","modified_gmt":"2024-09-09T02:52:07","slug":"dollar-holds-steady-while-yen-slips-amid-ongoing-fed-rate-cut-debate","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/dollar-holds-steady-while-yen-slips-amid-ongoing-fed-rate-cut-debate\/","title":{"rendered":"Dollar holds steady while yen slips amid ongoing Fed rate-cut debate"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Key points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dollar stays within range: USD remains steady with the DXY index at 101.21.<\/li>\n\n\n\n<li>Yen drops: USDJPY fell 0.26% to 142.65, paring last week&#8217;s gains.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The dollar held steady on Monday as investors remained uncertain about the size of an anticipated Federal Reserve rate cut this month. Meanwhile, the yen lost some ground after last week\u2019s rise, reflecting a pullback in risk aversion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/x.com\/ReutersBiz\/status\/1832267553562869832\">Friday\u2019s US jobs report added to the ambiguity in the market<\/a>. Although the report revealed a smaller-than-expected increase in employment, wage growth stayed strong, and the unemployment rate ticked lower. This suggests that while the labour market is cooling, it\u2019s not slowing fast enough to induce panic about economic growth.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">WATCH: US stocks fell on Friday weighed down by a jobs report that left traders uncertain about how far the Federal Reserve will go in cutting interest rates <a href=\"https:\/\/t.co\/8UznmSMSXr\">https:\/\/t.co\/8UznmSMSXr<\/a> <a href=\"https:\/\/t.co\/VTX2Po64B4\">pic.twitter.com\/VTX2Po64B4<\/a><\/p>&mdash; Reuters Business (@ReutersBiz) <a href=\"https:\/\/twitter.com\/ReutersBiz\/status\/1832267553562869832?ref_src=twsrc%5Etfw\">September 7, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Despite some initial post-data volatility, most currencies have stabilised in early Asian trading. The dollar index (DXY) remained nearly unchanged at 101.21.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/USDX-9Sept-1024x462.jpeg\" alt=\"\" class=\"wp-image-14944\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">See: Dollar index trading within the range of 101.190 and 101.235 on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Yen retreats after safe-haven gains<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The yen fell 0.26%, trading at 142.65 against the dollar, reversing some of its 2.73% gain from last week. Risk aversion had driven yen strength, but those gains were capped by mixed economic signals out of Japan. The latest data showed Japan\u2019s economy grew at a slower rate than initially reported in Q2, with corporate and personal spending being revised downwards.<br><br>Previously: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/safe-haven-yen-rallies-aussie-sinks-as-u-s-payrolls-test-approaches\/\">Safe-haven yen rallies, Aussie sinks as U.S. payrolls test approaches&nbsp;<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Euro and pound edge higher<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The euro rose slightly by 0.03% to $1.1089, while the British pound gained 0.06% to $1.3138. The restrained moves reflect the market\u2019s wait-and-see approach, with investors eyeing this week\u2019s US inflation data for clearer guidance on the Federal Reserve\u2019s next steps.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors are now split on whether the Federal Reserve will opt for a 25-basis-point or a 50-basis-point rate cut during its upcoming meeting. Futures markets show a 35% chance of a 50-basis-point cut.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The upcoming US inflation data could sway these expectations further, especially if it shows persistent price pressures, which may push the Fed to adopt a more aggressive stance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might be interested:<a href=\"https:\/\/www.vtmarkets.com\/market_analysis\/week-ahead-possible-ecb-rate-cut-takes-spotlight\/\"> Possible ECB rate cut takes spotlight&nbsp;<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Commodities currencies struggle for direction<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Elsewhere, the Australian dollar gained 0.07% to $0.6675, recovering slightly from Friday\u2019s three-week low. The New Zealand dollar, however, stayed flat at $0.6175, hovering near its recent two-week trough.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cautious sentiment in the market, paired with uncertainty about the Fed\u2019s next move, will likely keep currencies range-bound in the coming days. A clearer outlook may emerge after Wednesday\u2019s inflation report, but until then, traders remain in wait-and-see mode.<strong><br><\/strong><strong><br><\/strong><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key points: The dollar held steady on Monday as investors remained uncertain about the size of an anticipated Federal Reserve rate cut this month. Meanwhile, the yen lost some ground after last week\u2019s rise, reflecting a pullback in risk aversion. Friday\u2019s US jobs report added to the ambiguity in the market. Although the report revealed<a href=\"https:\/\/www.global-vtrader.com\/en\/analysis\/dollar-holds-steady-while-yen-slips-amid-ongoing-fed-rate-cut-debate\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,12],"class_list":["post-14943","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-forex"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=14943"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/14943\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=14943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=14943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=14943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}