​Dollar nudges lower as U.S. debt ceiling deal boosts confidence

2023-05-30
Summary:

European stock indexes edged lower on Monday and euro zone bond yields dropped, but news that the U.S. had reached a debt ceiling deal over the weekend kept Wall Street futures positive.

European stock indexes edged lower on Monday and euro zone bond yields dropped, but news that the U.S. had reached a debt ceiling deal over the weekend kept Wall Street futures positive.


The dollar nudged down, pulling back from six-month peaks against the yen. Oil prices slipped 1% and gold was little changed, hovering near Friday’s two-month low.


U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative debt ceiling deal on Saturday, aiming to stop the U.S. from defaulting on its debt.


The deal is expected to provide only short-term relief for markets, as worries linger about inflation and further rate increases.


Commodities

Markets weighed a tentative U.S. debt ceiling deal that would avert a default by the world's top oil consumer against further Federal Reserve interest rate hikes that could curb energy demand.


‘Traders have been left a little confused as to what we can expect,’ said Craig Erlam, senior markets analyst at OANDA.


‘It may be that Saudi Arabia wants to keep traders on their toes, but to make these comments and not follow through could be perceived as weak and see prices drift lower again,’ Erlam said.


Forex

Markets are now pricing in a roughly 50-50 chance that the Fed raises rates by another 25 basis points at its June 13-14 meeting, up from the 8.3% chance predicted a month ago, according to CME's FedWatch Tool.


The dollar was on course for a monthly gain of about 3% against the yen. The dollar index has gained 2.5% in May. Upbeat world sentiment pushed the risk-sensitive Australian and New Zealand dollars off last week's six-month lows.

USDJPY

​Swiss franc gains on sweeping tariffs

​Swiss franc gains on sweeping tariffs

The Swiss franc rose Friday, while the euro held steady after Trump’s harsher-than-expected tariffs shook markets, driving investors to safe havens.

2025-04-03
March ADP  - Job growth far below expectations

March ADP  - Job growth far below expectations

February saw just 77,000 jobs added, far below the 146,000 forecast, marking the smallest gain since July amid policy uncertainty.

2025-04-02
​Gold holds ground with tariffs in view

​Gold holds ground with tariffs in view

Gold traded above $3,100 on Tuesday as tariff uncertainty fueled safe-haven demand, boosting inflation concerns and economic growth risks.

2025-04-02