Dollar eases as risk appetite improves
The dollar index slipped to around 100 on Thursday, retreating from over five-month highs as stronger risk sentiment curbed demand for the safe-haven currency.
Still, upbeat US economic data and the Federal Reserve’s cautious stance on further policy easing lent support to the greenback.
The ADP report showed that US private employers added more jobs than expected in October, while the ISM Services PMI rose to an eight-month high. However, the ongoing government shutdown, the longest in US history, continues to delay the release of key official data.
Meanwhile, traders trimmed bets on a December rate cut after mixed signals from Fed officials, with markets now pricing in only a 62% chance of a 25 bps reduction, down from over 90% before last week’s FOMC decision.
The dollar weakened against all major peers, posting its largest losses versus the euro and yen.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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