The US economy today does not show the previous high growth rate, justifying the weakening of the dollar, the analysts say.
The US dollar on Monday of September 1 dropped to a 5-week minimum. The Euro went up 0.35% to 1.1724 dollars. Reuters reported it.
The dollar becomes cheaper against the rear of hoping a series of data in the US manufacture market. They can affect forecasts about softening the Federal Reserve System’s financial policy.
The dollar weakened 0.22% in the basket of money up to 97.64 after reaching 97.552, the lowest level from July 28. According to Friday results, he lost 2.2% per month. US markets are now closed in connection with the holiday.
In the financial markets, the possibility of nearly 90% of the Fed rate of 25 major points in September and about 100 BP was lightened until the fall of 2026. Some analysts would consider the possibility of reducing the Fed rate to 50 BP this month.
Investors are waiting for a report on work outside of agriculture in the United States on Friday, which precedes data on vacancies and private jobs.
Analysts note that the US economy no longer shows the previous high growth rate, justifying the weaker dollars, and new signs of weakening in the labor market may strengthen this situation.
Investors are also closely monitoring US trade policy and negotiations with major trading partners.
“We do not see the strong influence of the court’s decision on the market. The case is going to the Supreme Court, which is probably next to (US president Donald) Trump,” said economist Jefferies Mohit Kumar.
Remember that Donald Trump announced his desire to remove the member of the Federal Reserve System Council Lisa Cook, which could lead to a judicial dispute and influence the independence of the central bank.
Trump dropped the dollar with the values of 2022
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.