(Bloomberg) -- The dollar rose to a daily high after Federal Reserve Chair Jerome Powell downplayed the urgency in lowering interest rates as revisions to incomes has helped reduce downside risks to the economy. The greenback is still on track for the longest monthly losing streak since early 2023.
- The Bloomberg Dollar Spot Index rose 0.4%, but still on track for a full-quarter loss of 3.6%
- “A touch more hawkish, but he’s really sticking to the same message overall from the meeting,” said Helen Given, a foreign-exchange trader at Monex Inc. “It’s markets that got ahead of themselves correcting more than Powell changing his tone”
- EUR/USD down by 0.3% to 1.1124
- Germany’s government is poised to cut its prediction for Europe’s biggest economy and now expects no expansion at all this year, according to people familiar with the matter
- EUR/GBP fell as much as 0.4%, touching 0.8313, the lowest level since April 2022
- “The market is finally coming around to the fact that the eurozone outlook has deteriorated sharply,” said Win Thin, global head of markets strategy at Brown Brothers Harriman.
- GBP/USD steady, trading near 1.3372
- The UK economy grew more slowly than thought in the second quarter, suggesting the recovery from recession was already losing steam as Labour came to power
- USD/JPY up 1% to 143.71
- Japan’s incoming Prime Minister Shigeru Ishiba is planning to dissolve the country’s lower house on Oct. 9 and hold a general election on Oct. 27, according to NHK without attribution
- Leveraged funds pared residual long yen positions in favor of the greenback and Australian dollar since Friday due to Japan general election risk and China stimulus, according to an Asia-based FX trader
- AUD/USD rises 0.2% to 0.6915
Reporting by Anya Andrianova andVassilis Karamanis
