Daily Market Report 13 Sep 2024
Dollar on the backfoot as hype over rate cuts rises again
Overnight the Dollar softened across the board, as speculation rises for a 100bps cut in the US by the end of the year. This means, with the FOMC only having three meetings left, that the market is pricing in a 50bps cut at one of the three meetings. This being said, odds have risen again to nearly 42% for a 50bps cut at next week’s meeting. This change in market sentiment has seen the Yen trade back to its 2024 lows when dipping below 141.00, while the EUR has bounced firmly away from the 1.10 mark, which seems to be building further support for the Common Currency. EM currencies have taken its cue from the softer Dollar in recent weeks, and the Rand after touching the R18.00 big figure yesterday has traded back into the middle of the recent R17.60 – R18.00 range.
Treasury yields in the US have dipped further, as the 2-year yield is trading at a new 52-week low, with the market ramping up its bets on rate cuts in the near term. This shift in sentiment has led to Gold rallying to a new all-time high, trading at $2,570.00 earlier on. Palladium has continued its recent form and is currently heading for its best week of the year, as supply concerns are the main driver. Palladium is currently trading at $1,045.00, while Platinum is up at $983.50.
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