2023-11-24 09:24

The USD/MXN exchange rate witnessed a notable drop to 17.17 during European trading hours today, as market participants digest the culmination of the Federal Reserve's interest rate hikes and anticipate further economic indicators from S&P Global PMI data. Earlier this week, on Tuesday, the Federal Open Market Committee (FOMC) released minutes that were perceived as hawkish, which provided some stability to the US Dollar's value. Following this, on Wednesday, the release of positive US labor market and consumer sentiment data lent additional support to the Dollar, reflecting an economy that continues to show resilience. In contrast, Mexico's central bank, Banxico, maintained its benchmark interest rate at 11.25% for the fifth consecutive session during Asian markets post-Thanksgiving. This decision comes amidst persistent inflation concerns, although there has been noted progress in the disinflation process. The policymakers have expressed that the economic outlook remains "challenging," which has been a contributing factor to the fluctuations in the USD/MXN exchange rates. Investors and analysts are now closely monitoring the S&P Global PMI data for further clues on the economic health and potential future monetary policy decisions that could influence currency valuations and global financial markets. https://www.investing.com/news/forex-news/usdmxn-dips-as-fed-rate-hike-cycle-nears-end-banxico-holds-steady-93CH-3242523

2023-11-24 09:05

Copyrighted Image by: Reuters. In today's trading sessions across Europe and Asia, the New Zealand dollar (NZD) experienced a significant surge against the US dollar (USD), reaching a peak near 0.6060. This unexpected rise was primarily fueled by New Zealand's retail sales data for the third quarter of 2023, which remained unexpectedly flat, countering market forecasts of a -0.8% decline. Notably, when excluding auto sales, the figures showed an increase of 1%, starkly contrasting with the anticipated -1.5%. Further bolstering market sentiment, China's recent measures to support property developers like Country Garden Holdings Co have injected confidence into the markets, particularly influencing the NZD due to New Zealand's strong trade connections with China. Meanwhile, the USD showed mixed sentiment ahead of the release of S&P Global PMI data as investors weighed the Federal Reserve's potential policy changes, including possible interest rate cuts in May 2024. Despite an increase in Treasury yields following the Thanksgiving holiday, the Federal Open Market Committee's (FOMC) latest hawkish stance combined with solid US labor and consumer sentiment reports are tempering bearish bets on the USD. https://www.investing.com/news/forex-news/nzdusd-peaks-as-kiwi-retail-sales-defy-expectations-93CH-3242520

2023-11-24 08:54

Copyrighted Image by: Reuters Investing.com - The U.S. dollar edged lower in thin holiday-affected volumes Friday, amid uncertainty of the future path of U.S. interest rates. At 03:00 ET (08:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, fell 0.3% to 103.555, just above the two-and-a-half month low of 103.17 it touched earlier this week. Dollar on course for hefty monthly loss Volumes are likely to be limited Friday due to a shorter U.S. trading session after Thursday’s Thanksgiving holiday. That said, the dollar index is still on course for a monthly loss of around 2.5%, which would be its weakest monthly performance in a year, on growing expectations that the Federal Reserve could start cutting rates next year after ending its rate-hiking cycle at its meeting at the start of this month. Even though it’s a half day in the U.S., there is still important economic data to study, in the form of manufacturing and services PMI data for November, which should provide evidence of how resilient the U.S. economy has been. This data “has triggered a growing market impact, but may fail to decisively steer the dollar in a low-volume day,” said analysts at ING, in a note. Euro gains; German recession could be shallow In Europe, EUR/USD rose 0.1% to 1.0909, having risen 0.2% overnight after PMI data indicated a recession in Germany may be shallower than expected. Data released Friday showed that Europe’s largest economy shrank 0.1% in the third quarter compared with the previous three months, confirming an initial estimate, published in late October. That said, policy makers from the European Central Bank have been keen to warn that the central bank pausing its streak of 10 consecutive rate hikes at its October meeting doesn’t mean rate cuts are just around the corner. “The notion that recessionary pessimism may have peaked in the eurozone is a positive for EUR/USD, but whether this can offer support to the pair already in the near term is a different question,” ING added. GBP/USD rose 0.2% to 1.2553, in the wake of Chancellor Jeremy Hunt’s measures to boost growth before next year’s election. “The tax cuts announced by the Treasury are, on paper, a sterling-positive. They are both pro-growth and pro-inflation and do not seem to have excessively unnerved the bond market,” said ING. Japanese CPI grows less than expected In Asia, USD/JPY traded 0.1% lower at 149.50, with the yen helped by the dollar weakness, even after the release of data showed that Japanese consumer inflation grew slightly less than expected in October. The reading, coupled with weak PMI data for November, give the Bank of Japan more headroom to maintain its ultra-dovish policy. USD/CNY rose 0.1% to 7.1524, although the yuan is heading for its fourth straight week of gains. Traders now await PMI readings from China next week, amid persistent concerns over a sluggish economic rebound, which could test the yuan’s rebound from an over one-year low. https://www.investing.com/news/forex-news/dollar-retreats-in-thin-volumes-fed-monetary-policy-in-focus-3242513

2023-11-24 08:32

Copyrighted Image by: Reuters. The EUR/GBP pair reached a low of 0.8697 during the early European trading hours today, influenced by strong UK economic indicators. The market's attention is now focused on the upcoming German Q3 GDP and IFO Survey results, which are eagerly awaited for further insight into the eurozone's economic health amid concerns of a technical recession and ongoing high inflation. Yesterday's data revealed that the Eurozone's Manufacturing Purchasing Managers' Index (PMI) climbed to a six-month high of 43.8, while the Services PMI reached a two-month peak at 48.2. Despite these improvements, worries about an economic downturn in the region persist. In contrast, the United Kingdom reported an unexpected rise in its composite PMI to 50.1, indicating stability and reflecting gains in both Manufacturing and Services sectors. This positive development has strengthened the British pound, as it suggests a more resilient UK economy. Furthermore, comments from Bank of England Governor Andrew Bailey hinted at the possibility of future interest rate hikes in response to persistent inflationary pressures. These remarks have also contributed to the pound's strength against the euro, as investors anticipate tighter monetary policy to combat inflation in the UK. https://www.investing.com/news/forex-news/eurgbp-drops-to-new-low-as-uk-pmi-data-outshines-eurozone-93CH-3242503

2023-11-24 08:24

The USD Index (DXY) is currently trading in a tight range below the pivotal resistance level of 104.20, with the latest figures showing it near 103.70. This activity comes amidst a period of subdued post-holiday market movements and investor anticipation of potential Federal Reserve interest rate cuts by spring 2024. Market participants are closely watching for today's release of Manufacturing and Services PMI data, which could influence the currency's trajectory. The DXY is drawing support from its recent low at 103.17 and has additional support levels at 102.93, as well as the significant round number of 100.00. Despite recent bullish efforts, resistance has been met with a weekly high just over the crucial threshold at 104.21. While there is speculation about upcoming rate cuts, some Federal Reserve officials maintain a hawkish stance, providing underlying support for the US dollar. Investors are balancing these mixed signals as they navigate the currency markets and assess the broader economic landscape. https://www.investing.com/news/forex-news/usd-index-hovers-near-10370-amid-rate-cut-expectations-93CH-3242476

2023-11-24 08:23

Copyrighted Image by: Reuters The world's largest cryptocurrency exchange by trading volume, Binance, has officially commenced support for the NFT marketplace Blur's native token, BLUR. Trading pairs such as BLUR/BTC, BLUR/USDT, and BLUR/TRY went live today at 09:00 UTC. This move comes on the heels of Blur founder Tieshun Roquerre's announcement of a $40 million investment into the ecosystem and the unveiling of their layer-2 network, Blast. The market response to these developments has been markedly positive. BLUR's price climbed to $0.62, reflecting a sharp increase of more than 25% in a single day and nearly doubling its value over the past week. The token's market capitalization has now reached $690.7 million. The heightened investor interest is partly due to the strategic alliance with Blast, which includes season 3 airdrop allocations for BLUR holders. In light of its rapid price appreciation and significant role as a leading NFT lending protocol—especially after partnering with Blast—Binance has assigned BLUR a Seed Tag, indicating a higher volatility and risk assessment. This tag is meant to inform traders of the dynamic market activity surrounding the token. Furthermore, Binance has announced plans to add BLUR as a borrowable asset on an Isolated Margin pair shortly after trading begins. Additionally, within two days following the trading start, a new margin pair for BLUR/USD will be introduced to cater to the growing demand. Deposits for the cryptocurrency began ahead of the trading launch, with withdrawals slated to be enabled tomorrow at 06:00 UTC. Notably, Binance has listed BLUR without imposing any listing fee. https://www.investing.com/news/cryptocurrency-news/binance-lists-blur-token-as-its-value-surges-93CH-3242475