US Dollar Dives As Fed Rate Hike Dims
The US Dollar dove Vs most major currencies Monday as participants lowered their expectation for a Fed interest-rate hike this year following a major selloff in global financial markets.
US stocks dove deep on the open Monday, with the DJIA falling below 16,000 for the 1st time since February 2014.
The Chinese stock markets had their worst day in 8 years with the benchmark Shanghai Composite Index falling 8.49% to close at 3,209.91 pts.
European equities also dove Monday following the steep decline in the prior session, as the Stoxx Europe 600 was down over 6%, and Germany’s DAX fell 4%.
Some analysts said the weak economic data from China fueled worries that a drop-off in Chinese growth could cause a global slowdown, casting uncertainties on the timing of the US Fed raising interest rates, I do not see that as a factor, it is a coincidence I believe.
The US Dollar (.DXY) Index which measures the Buck against 6 major peers, finished down 1.71% at 93.386 into the close.
In late New York trading, EUR rose to 1.1591 from 1.1359 $’s in the prior session, and GBP rose to 1.5773 from 1.5703 $’s in the prior session, and AUD inched down to 0.7184 from 0.7329 $ earlier.
The Buck bought 118.62 JPY, lower than 122.06 of the prior session. The USD fell 0.9336 Swiss Franc (CHF) from 0.9486 , and spiked to 1.3241 Loonies (CAD) from 1.3170 earlier.
The fed fund futures indicate that the odds of a September rate hike are now about 20%.
Stay tuned…
HeffX-LTN
Paul Ebeling
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