The U.S. dollar is becoming cheaper in pairs with the pound and the euro, but it is slightly stronger against the Japanese yen.
The ICE-calculated index showing the US dollar’s dynamics against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krona) is down less than 0.1% in the morning session.
The euro/dollar pair is trading at $1.0599 as of 8:18 a.m. versus $1.0587 at the close of Tuesday’s session, with the euro adding about 0.2%.
Investors continue to evaluate statistical data and statements by Federal Reserve (Fed) officials to try to predict future interest rate changes.
Judging by the rate futures, market participants see some probability that at the next meeting of the Federal Reserve the rate will be increased by 50 basis points at once, though earlier investors were sure that the central bank will now change the rate in steps of 25 bps.
Overall, the market is expecting a rate hike to peak at 5.25-5.5% from the current 4.5-4.75%.
The pound is up 0.2% at $1.2049 versus $1.2023 at the close of last session.
The dollar is up 0.1% against the yen, trading at 136.37 yen.
Meanwhile, the yuan, which is traded in mainland China, jumped against the dollar by 0.4% to 6.9035/$1.
As reported, Purchasing Managers Index (PMI) in the processing industry in China rose to 52.6 points in February from 50.1 points a month earlier. Experts on average had expected a more moderate increase to 50.5 points.
The service sector PMI rose to 56.3 points in February from 54.4 points in January. The indicator reached its highest level since March 2021.
The index value above the mark of 50 points indicates an increase in business activity, below it – a decrease.
