Market Analysis

[MARKET ANALYSIS] Dollar remains firmer amid ongoing rate hike expectations and despite the decline in oil

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The US dollar firmed amid rate hike expectations, Fed support, and geopolitical talks, pressing EUR, GBP, AUD, and NZD lower while USD/JPY rose during Japanese market holidays.

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DXY: +0.1% Remained firmer after gaining at the start of the week as rate hike expectations held, despite the downward pressure in oil prices, with Fed's Barkin and Collins both expressing support for last week's rate hike. Nonetheless, the focus was on the UN General Assembly with US President Trump meeting with several leaders, while he announced that US officials met with the Iranian delegation, adding that the meeting went well and was very productive. EUR/USD: -0.1% Slightly softened after its recent choppy performance with little fresh drivers from the bloc, while there were comments from ECB's Nagel that rates are still in neutral territory and that they cannot exclude needing to go into mildly restrictive territory. GBP/USD: -0.1% Demand is subdued with price action confined within the 1.3300 handle, while little reaction was seen following UK PM Burnham's first-ever meeting with US President Trump, where he was said to have pushed Trump on tariffs. USD/JPY: +0.2% Extended on yesterday's intraday rebound amid a firmer dollar and the continued absence of Japanese participants, who will be returning from the holiday closures tomorrow. Antipodeans: AUD/USD -0.2% / NZD/USD -0.3% Trickled lower with headwinds amid the subdued risk appetite and weaker flash PMI data from Australia.

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