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Foreign exchange market: The dollar falls, the pound up, the Australian and New Zealand dollars still losing

21/07/2023
Source : ORISHAS FINANCE
Categories: Economy/Forex

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At the end of the week, the currencies move in a degraded order. The dollar is weakening as the Fed's week approaches. While the pound sterling rises, the Australian and New Zealand dollars continue to lose.

After the first really turbulent day on the financial markets in weeks, the return to calm on Friday suggests that this sudden surge in activity. However, this index has remained up 76% since the start of the year.

Futures forecasts rates to rise by a quarter point next week, but indicate less than a one-in-two chance of another rise by November and a 75 basis point reduction from the peak by next year. Rising yields have allowed the dollar to record its best performance since the start of May, helped by growing doubts about the will of the other major central banks to continue to tighten their interest rates when the Fed ceases

its activities.

The dollar/yen surpassed 141 on Friday for the first time in 10 days. After the figures were released, the pound rose by 0.28%, reaching a high of $1.2904 after the figures were released. It was in last position, up 0.2%. But was still heading for its biggest weekly loss against the dollar in January

.

For their part, the Australian and New Zealand dollars suffered significant weekly losses on Friday. Markets are preparing for higher interest rates in the United States and Europe, reducing the chances of a further rise at the national level. Since the start of the week, the Australian dollar was struggling at $0.6770, and lost 1.1%, to test the support around $0.6750

.

For its part, the New Zealand dollar was even worse off at $0.6223. It lost 2.2% over the week, far from a recent high of $0.6412

set last Friday.
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