Commodity News
HeadLine : Dollar firm ahead of payrolls; kiwi shrugs off rate hike
Date : Oct 6 2021
The dollar inched higher in choppy trade on Wednesday amid heightened nerves about the global growth outlook and as traders awaited U.S. jobs data for a clue on the timing of Federal Reserve policy tightening. The Reserve Bank of New Zealand lifted its official cash rate for the first time in seven years, but the well-telegraphed hike was expected and the New Zealand dollar barely budged. The greenback has won support as investors brace for the Federal Reserve to begin tapering asset purchases this year and lay the ground for an exit from pandemic-era interest rate settings well before central banks in Europe and Japan. Fed funds futures markets are priced for rate hikes to begin around November 2022, but anticipate rates topping out at just over 1% through most of 2025 even though Fed members project rates reaching 1.75% in 2024. U.S. non-farm payrolls data due on Friday is seen as crucial to informing the Fed’s tone and timing, especially should the figures wildly impress or disappoint. Elsewhere, commodity-linked currencies drew support from oil prices, which have surged to three-year highs. 

Source: Reuters

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