Dollar drops, gold near record high as bets for big Fed cut ramp up
interest rate cut next week, after media reports suggested the decision would be a closer call for officials than previously thought.
Traders raised bets back to 39% for a 50-basis point reduction on Sept. 18, according to LSEG data, from about 28% before articles in the Financial Times and Wall Street Journal appeared.
«This is yet another twist in the (Fed rate cut) debate,» said Tony Sycamore, an analyst at IG, noting the tug-of-war being played out in bond futures and the dollar-yen rate in particular.
«Everybody thought we were back on track for 25 basis points, and now 50 is suddenly back on the table.»
The dollar dropped 0.42% to 141.22 yen as of 0020 GMT, heading back towards Wednesday's low at 140.71, the weakest level this year.
Stock Trading
Market 101: An Insight into Trendlines and Momentum
By — Rohit Srivastava, Founder
Stock Trading
Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading
By — Rohit Srivastava, Founder
Stock Trading
Market 103: Mastering Trends with RMI and Techno-Funda Insights
By — Rohit Srivastava, Founder
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Introduction to Technical Analysis & Candlestick Theory
By — Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert
The dollar index, which measures the currency against the yen and five other major rivals, dropped to a one-week trough.
Gold hovered just below Thursday's all-time high of $2,560.01,
