Dollar slips lower, continuing last week's selloff
Investing.com — The U.S. dollar edged lower in early European trade Monday, falling to a six-week low and extending last week’s declines on the back of a less hawkish stance from the Federal Reserve.
At 03:20 ET (08:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, edged 0.1% lower to 104.782, after dropping more than 1% last week, its heaviest fall since mid-July.
The dollar has been on the wane since last week’s Federal Reserve policy-setting meeting, when the central bank offered somewhat dovish signals on more interest rate hikes.
This tone was backed up by Friday’s official jobs report, which showed that U.S. nonfarm payrolls grew less than expected in October. The reading signaled more cooling in the U.S. labor market, which has been a key driver of the Fed’s hawkish stance this year.
Fed fund futures imply around an 85% chance the Federal Reserve has now completed its hiking cycle, and an 80% chance it will start cutting in June.
There are at least nine Fed speakers scheduled to speak this week, including two appearances by Chair Jerome Powell — the second of which on Thursday includes a Q&A session.
EUR/USD rose 0.1% to 1.0743, with the euro climbing to levels last seen in September on the back of the dollar weakness, rather than any form of regional economic strength.
German factory orders rose 0.2% on the month in September, a stronger result than the fall of 1.0% expected, but still a sharp drop from the revised 1.9% gain seen in August.
Additionally, Germany's residential construction sector was again hit by a wave of cancellations in October, according to a survey from the Ifo economic institute, published on Monday.
«It's getting worse all the time, with more
Read more on investing.com
