The best dollar rate has been stable this Wednesday so far, not quite outperforming major currencies as it had done on Tuesday. The reason is most likely due to the release of data on Employment Change and Manufacturing PMI for October. There was also the release of Job Openings data for September. Soon enough, there will also be a Fed meeting and conference. Analysts are expecting the Fed to announce decisions when it comes to monetary policy in the coming month.
Most expect the Fed to not shift on their current monetary policy, staying at the current 5.25%-5.5% level. This would mean keeping stable for two meetings in a row. Any more hikes could have a poor effect on markets, boosting volatility considerably.
While stocks have generally been doing well, the best dollar rate failed to move as Treasury yields climbed up. In addition to this, the end of October saw the trade of greater volumes of the currency, which affected prices. The US dollar index did manage to rise up, and is now 0.5% higher than it was and is now stable at 106.5.
The dollar originally rose to a high point of $1.065 against the euro for those desiring to buy dollars. However, this temporary gain reversed soon enough and moved down just over 1.055 for Tuesday. It has now remained stable at this point.
There has also been poor performance against the pound. The exchange rate had originally risen to 1.22 this Tuesday, but this proved to be a resistance point, after which it has dropped to 1.215 for Wednesday so far.
Lastly, there is the yen. The USD/JPY pair had reached over 151.7, but this had a drop shortly afterwards to 151.5. This is $0.0066 in terms of yen to dollars. A Japanese official, Masato Kanda, spoke about the government’s concerns about upwards movements. This may then have had an effect on the later exchange rate dip.
