The US dollar depreciated against the euro, pound sterling, and yen on Friday. The ICE DXY index, which measures the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling, and Swedish krona), is losing 0.06%, while the broader WSJ Dollar Index is down 0.16%.
The day before, the DXY rose by 0.4% on strong data on the dynamics of retail sales in the US for July, which confirmed the stability of the US economy and dispelled fears of a recession, Market Watch writes.
Investors are confident that the Federal Reserve will begin to ease monetary policy in September, as the July inflation report released earlier this week confirmed its continued weakening. The probability that the rate will be lowered by 25 basis points at the September meeting is estimated by the market at 74.5%, according to CME FedWatch. At the same time, expectations that the rate would be cut by 50 bps at the next meeting have declined after the publication of positive statistics.
As of 9:15 a.m. ET, the euro was trading at $1.0986 compared to $1.0971 at the close of the previous session.
The value of the pound sterling against the dollar rose to $1.2883 from $1.2854 the day before.
Traders’ attention is shifting to the annual Jackson Hole Economic Symposium, which traditionally brings together the heads of the world’s leading central banks. This year’s event will be held on August 22-24.
On Friday, the dollar/yen pair is trading at 148.97 yen against 149.3 yen at the close of the previous session. The dollar to offshore yuan exchange rate fell to 7.1768 yuan against 7.1816 yuan the day before.
