USD fells on the European market on Tuesday against a basket of global currencies, continuing its decline for the second day in a row, due to the decline in yields of US bonds for ten years, and restraining losses increased the likelihood of the Federal Reserve to raise interest rates for a third time this year, An important statement on the labor market was released today.
The dollar index fell by 93.17 points from the opening level of 93.28 points by 93.28 points and recorded the highest level of 93.28 points and the lowest level of 93.10 points.
The index ended yesterday’s trading down 0.1 % after Friday’s biggest gain since January 27, after positive data on the US job market.
Some members of the Federal Reserve said on Monday that weak levels of inflation had been a problem, but it reduced the risk of market dislocation when the central bank began to cut its balance sheet.
The prospects for the Federal Reserve to raise interest rates for a third time this year have rebounded, and the strongest meeting will be in December, especially after recent labor market data, which showed the economy adding new jobs better than expected in July.
In order to reassess those possibilities, investors are looking forward later this week to US inflation data. The positive data will reinforce these possibilities, especially as the Federal Reserve’s focus is on improving the country’s inflation rate.
The US economy is expected to release an important labor market release later today, represented by expected vacancies of 5.74 million in June from 5.67 million in May.