logo-loader

Investors contemplate dollar peak as greenback continues to fall against pound and euro

Published: 07:44 05 Dec 2022 GMT

Forex report

The US Federal Reserve has a jobs problem. According to data released at the end of last week, Americans are getting paid too well, having netted another 0.6% monthly increase in hourly earnings – the biggest gain in 10 months.

Certainly good news for employees, but given the implications for inflation, it also throws a spanner in the works for any plans to ease up on monetary policy hikes.

Investors didn’t appear to take note though, since the US dollar continued to cut back against most major currencies. This could be taken as the latest signal of a dollar peak.

GBP/USD reached six-month highs of 1.234 this morning, before seeing a minor correction back to 1.230 as the Asia trading window progressed.

GBP/USD hits half-year highs. Is dollar peak in? – Source: capital.com
GBP/USD hits half-year highs. Is dollar peak in? – Source: capital.com

EUR/USD opened the session at 1.054 and is now changing hands at 1.056, the highest the pair has been since late June.

The US Dollar Index is looking fairly flat at 104.05, in part because of a minor rally against the Japanese yen, with 45 pips added to USD/JPY this morning, thus bringing the pair up to 134.88.

Eurozone retail sales are due later today, with a -0.6% year-on-year slide to be expected, while UK services PMIs are expected to remain unchanged from November.

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

12 hours, 1 minute ago