New York Money Market Conditions: Dollar Weakened Fed Interest Rates Expected to Reach Peak Levels By InfoQuest.


© Reuters Financial market conditions in New York: Dollar weakness. The Federal Reserve’s interest rates are expected to reach peak levels.

InfoQuest – The US dollar weakened against major currencies in trading on the New York Forex Exchange on Friday (November 24) as investors expected US interest rates may have reached their highest levels yet. With the yen strengthening after the release of the core CPI, Japan expanded. Reinforcing the prediction that the Bank of Japan (BOJ) is likely to soon reverse its ultra-accommodative monetary policy.

The index, which measures the dollar’s movement against six major currencies in the basket, fell by 0.38% to 103.375, with the dollar index remaining near the lowest level in two and a half months at 103.17 that it tested during the session. Of the week

Currencies trade in a narrow range and liquidity will remain weak. The New York Stock Exchange traded for only half a day on Friday. After the market closes on Thursday (November 23) for Thanksgiving.

The dollar index fell 2.8% this month. It may fall by the largest monthly number in one year amid expectations that the Federal Reserve (Federal Reserve) has finished raising interest rates. It may start cutting interest rates next year.

The Japanese yen stabilized at 149.57 yen against the dollar. The yen rose as Japan’s core CPI rose slightly in October. After falling in September, which strengthened investors’ expectations that inflation may prompt the Bank of Japan to end its negative interest rate policy

The euro stabilized at $1.0909 after the data was released. The German economy contracted slightly in the third quarter.

The pound sterling rose for the second day in a row, rising 0.2 percent to $1.2016 after data released on Thursday showed British companies returned to growth in May. This raises hopes that Britain can avoid a recession.

Standard & Poor’s Global revealed on Friday that the Purchasing Managers’ Index (PMI) combines the manufacturing and primary services sectors in the United States. It stabilized at 50.7 in November, with the PMI above 50, indicating expansion of the US business sector.

The Purchasing Managers’ Index (PMI) was supported by an expansion in new orders after contracting for 3 consecutive months but under pressure by a decline in employment for the first time since June 2020. At the same time, business confidence improved slightly.

However, the purchasing managers’ index (PMI) for the primary manufacturing sector fell to 49.4, the lowest level in 3 months, from 50.0 in October, with the manufacturing PMI below 50.0, indicating that the manufacturing sector is in contraction.

As for the Purchasing Managers’ Index (PMI) for the primary services sector, it rose to 50.8, the highest level in 4 months, from 50.6 in October, with the PMI for the services sector remaining above 50.0, indicating that the services sector is expanding.

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