During today's Asian trading, the US dollar rose moderately against major currencies, but remains near the new 2024 low reached yesterday against the background of the minutes of the last Fed meeting.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.17% to 101.20. Yesterday, the index fell by 0.26%, as the dovish minutes of the July Fed meeting and new signs of weakness in the US labor market reinforced the arguments in favor of lowering interest rates. The minutes of the Fed meeting showed that in July, officials were strongly inclined to lower the rate at the September meeting, and some of them were even ready to immediately reduce the cost of borrowing. According to the CME FedWatch Tool, markets see a 34.5% probability of a 0.5% rate cut in September (up from 25% the week before), and a 65.5% probability of a 0.25% rate cut (down from 75.0% the week before). Now investors are preparing for the publication of the initial jobless claims report (to be presented at 12:30 GMT) and a speech by Fed Chairman Jerome Powell at the annual central bank symposium in Jackson Hole (tomorrow at 14:00 GMT).
The yen consolidated against the US dollar, as market participants are cautious ahead of tomorrow's speech by the head of the Bank of Japan Kazuo Ueda at a special meeting of parliament, which will consider the unexpected decision of the Central Bank to raise rates at the end of last month. Traders are hoping for greater clarity on Japan's monetary policy after conflicting signals in recent weeks from the head of the Bank of Japan and his deputy Shinichi Uchida.