(Bloomberg) -- A dollar gauge weakened against all of its peers in the Group of 10 Wednesday. The euro was among best performers on the day, while the Swiss franc trailed behind all peers as a report said there’s no progress on tariff deal.
- The Bloomberg Dollar Spot Index fell 0.4%, worst intraday since Aug. 1
- “With little on the data docket today, the story this morning is primarily headline risk,” said Helen Given, a foreign-exchange trader at Monex USA. “Since the headline risk is coming from the US itself, it means weaker dollar”
- Markets are waiting for President Donald Trump to nominate a replacement for Federal Reserve Governor Adriana Kugler and tariffs to go into effect on Thursday, Given said
- Fed officials are scheduled to speak Wednesday
- ING moved its Fed interest rate-cut call to September from December, calling US jobs report “a wake-up call,” while Monex Europe keeps its view that the Fed will remain on hold through this year
- “The acceleration in rate cuts bets over recent days is wishful thinking about the Fed coming to rescue growth — we think inflation remains the priority,” said Nick Rees, head of macro research at Monex Europe Ltd in London. “Our models have consistently pointed toward a ramp up in price pressures with a peak in 4Q”
- USD/CHF traded 0.1% weaker at 0.8067 after declining as much as 0.3% earlier in the day
- Switzerland’s president is about to leave Washington without announcing any success in lowering the 39% tariff Trump has put on her country, according to people familiar with the situation
- NZD/USD gained 0.5% to 0.5934
- Unemployment rate in New Zealand climbed to 5.2% in the second quarter, compared to economists’ expectation for a reading of 5.3%. Market reaction was tempered given that the print was still the highest since the third quarter of 2020 in the latest sign of an economic slowdown
- EUR/USD climbed 0.6% to 1.1641
- USD/JPY fell 0.2% to 147.38
- Some information comes from an FX trader familiar with the transactions who asked not to be identified because the person isn’t authorized to speak publicly
Reporting by Anya Andrianova and Greg Ritchie
