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Dollar moves in negative zone ahead of Fed remarks
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Dollar moves in negative zone ahead of Fed remarks
May 13, 2024 7:36 AM

Dollar fell in European trade on Monday against a basket of major rivals, resuming losses and moving in a negative zone under pressure from lower US 10-year treasury yields.

Now investors await a batch of remarks from Fed officials on the battle of inflation and the future of US interest rates.

Now investors await producer and consumer prices data this week, crucial for gauging the path ahead of monetary policies.

The Index

The dollar index fell 0.1% to 105.21, with a session-high at 105.37, after rising 0.1%.

US Yields

US 10-year treasury yields fell 0.4% on Monday, resuming losses and pressuring the dollar.

The developments come amid an improving risk appetite following strong corporate results for the first quarter, especially in the US.

US Rates

Following the remarks, the odds of a Fed interest rate cut in June fell to 4%, while the odds of such a cut in July fell to 25%, as the odds of a September cut fell to 63%.

According to the Fedwatch tool, investors are pricing in two interest rate cuts this year, likely in September and November.

US Inflation

Investors are waiting for a string of important US data this week, chief of which is consumer prices data for April.

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