(Bloomberg) -- The dollar traded slightly weaker as President Donald Trump addressed world leaders gathered in Davos on Thursday, calling for lower interest rates in the US and cheaper oil
- The yen was the best performer in the Group of 10 as the Bank of Japan is to announce on interest rates Friday.
- The Bloomberg Dollar Spot Index fell 0.2%
- READ: Trump Urges Lower Oil Prices, Interest Rate Cuts at Davos
- “Equities are definitely cheering comments from Trump on pushing for lower interest rates, but that’s not great news for the dollar,” said Helen Given, a foreign-exchange trader at Monex. “It’s not likely that Trump will realistically have much sway on any potential rate cuts from the Fed, but a push for lower rates especially in the face of heavy tariff proposals would make for an interesting mix for USD moving forward”
- USD/JPY declined 0.4% to 155.90; the BOJ kicked off a two-day policy meeting, where policy makers are expected to decide on an interest-rate hike, while forward guidance is seen neutral-to-dovish
- USD/CAD fell 0.2% 1.4358
- EUR/USD rose 0.1% to 1.0423; traders are placing big options bets on the ECB delivering at least one half-point cut to interest rates by the middle of the year
- GBP/USD climbed 0.4% at 1.2360; market focus also looking ahead to preliminary PMI figures for January due Friday
- Some information comes from FX traders familiar with the transactions who asked not to be identified because they aren’t authorized to speak publicly
Reporting by Anya Andrianova and Vassilis Karamanis
