Dollar hits 10-week high against yen as Fed bets ebb ahead of CPI
Updates at 0830 GMT
By Kevin Buckland and Harry Robertson
TOKYO/LONDON, Oct 10 (Reuters) -The U.S. dollar rose to a 10-week peak against the yen on Thursday as markets grew more confident about a patient approach by the Federal Reserve to further monetary easing, even as a key inflation report loomed later in the day.
The dollar index =USD, which measures the currency against six key rivals including the yen, stuck close to an almost two-month top touched overnight, as traders further pared bets for U.S. rate cuts this year after last week's unexpectedly strong payrolls data.
The U.S. currency touched 149.54 yen for the first time since Aug. 2. JPY=EBS, although it was last down 0.1% at 149.11yen. Meanwhile, the euro EUR=EBS languished near its lowest since Aug. 13 against the dollar, flat on the day at $1.0935.
September's consumer price index (CPI), due at 1230 GMT, is likely to show core U.S. inflation holding steady at a 3.2% year-on-year clip, economists polled by Reuters said.
Minutes from the Fed's latest meeting, released overnight, confirmed the central bank's focus on keeping the labour market healthy.
"The argument for a more gradualist approach is now definitely the central position," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
"The market's momentum is towards reconsidering how much the Fed will really cut in the coming months. I think that momentum can build, because the U.S. data flow has been relatively good recently."
San Francisco Fed President Mary Daly said late on Wednesday that she was less concerned now about resurgent inflation than about hurting the labourmarket.
Traders lay 85% odds on the Fed cutting rates by 25 basis points at its next policy decision on Nov. 7, and a 15% probability of no change, the CME Group's FedWatch Tool showed.
A week earlier, markets saw a cut as certain,with 35% odds on another half-point reduction.
The dollar index was little changed at 102.93 by 0830GMT, around the highest since the middle of August.
"There is a limit to how much more pricing for interest rate cuts can be removed without strong guidance by senior Federal Open Market Committee (FOMC) officials," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia, who forecasts 50 basis points of cuts over the year's two remaining Fed meetings.
The risk-sensitive Australian dollar AUD=D3 was up0.11%to $0.6726. It earlier rose more than 0.3% on the back ofan equity rally in top trading partner China as the East Asian nation's central bank launched a swap programme aimed at supporting the stock market.
China's finance ministry is due to hold a highly anticipated news conference on fiscal policy on Saturday.
The Aussie dropped to its weakest since Sept. 16 at $0.6708 on Wednesday, after a stimulus announcement by China's state planner fell flat.
RBC's Tan said he expects China to announce fiscal stimulus on Saturday that should be "enough to create a floor for China’s economy".
He said the stimulus is likely to support China's yuan CNY=CFXS, which has fallen in recent days, and boost other Asian currencies such as the Singapore dollar and the Indonesian rupiah.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Kevin Buckland and Harry Robertson; Editing by Shri Navaratnam, Clarence Fernandez and Sharon Singleton
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
