The dollar continues to strengthen, and the $-Index extended its lead throughout the session, rising +0.5% to break through the 104.00 barrier for the first time since August 2.
The euro lost 0.4% to 1.0815, the yen -0.9% (the dollar rebounded to 150.8), while the Swiss franc held firm, posting the same gaps against the euro and yen.
The greenback strengthened, in the absence of any new stats or statements from FED members worrying about inflation, for example, or dismissing the possibility of a rate cut at the next meeting on November 6/7 (postponed by one day due to the presidential elections on 11/5).
No link between the FOREX trend and the Conference Board’s leading indicators on Monday, which were down by -0.5%: the composite index calculated by the Conference Board was expected to be down by only -0.3%.
The employers’ organization points out that over the six-month period from March to September 2024, the index fell by 2.6%, a sharper decline than the 2.2% observed over the previous six-month period.
In addition to the weakness of new industrial orders, the Conference Board points to the continued inverted yield curve, the decline in building permits and consumer pessimism about future business conditions.
More significant figures are expected in the second half of the week, with preliminary PMI indices, as well as business climate indices in France and Germany.
It should be noted that, despite the Dollar’s firmness and the pressure on rates (+12Pts on the US 10-year at 4.195%, +12Pts on the 30-year at 4.500%), Gold set a new all-time record at $2,740 and Silver a 12-year record at over 34.4/Oz.
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