The dollar steadied against a basket of currencies on Friday after softer-than-expected inflation data saw the greenback sink to one-month lows, amid increased bets that the Federal Reserve will cut interest rates in September.
The market, however, is still awaiting clearer signs of action. While Fed Chair Jerome Powell acknowledged the recent improving trend in price pressures, he told lawmakers that more data was needed to strengthen the case for rate cuts.
In a recent report, JPMorgan announced that a new Bitcoin rally is expected in August. The analysts of the renowned bank are optimistic that the recent phase of correction will soon come to an end and the market can recover. Despite the recent significant setbacks, the banking giant sees light at the end of the tunnel.
U.S. companies releasing quarterly results in the coming weeks face investors who expect no less than stellar growth, with estimates particularly high for Wall Street technology heavyweights such as Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT).
Conversely, overseas investors pulled back from Japanese bonds for a fourth consecutive week, selling long-term bonds worth a net 228.8 billion yen and short-term instruments totalling 876.9 billion yen, Ministry of Finance data showed.
A key point of pressure on the dollar was Powell stating that the Fed did not need to see inflation falling below its 2% target to begin cutting rates, only that the bank needed enough confidence that inflation was easing.
The yellow metal was sitting on some gains this week, buoyed by reports that several central banks in emerging markets were stocking up on the yellow metal. Dovish-leaning comments from Federal Reserve Chair Jerome Powell also furthered the yellow metal’s advance.
The world’s biggest cryptocurrency was nursing a 15% slump over the past month, and remained on the cusp of a bear market as fears of increased token supplies battered markets.
Asian stocks rose on Thursday as technology stocks rallied after positive revenue figures from chipmaking giant TSMC sparked more optimism over artificial intelligence, with Japanese stocks crossing new peaks.
European shares advanced on Wednesday led by corporate earnings, although gains were limited by weak oil and metal prices, while investors awaited Federal Reserve Chair Jerome Powell’s second day of testimony for more clues on interest rates.
