KONTAN.CO.ID - LONDON. The dollar slipped for a second day against its rivals on Thursday on the back of softer U.S. Treasury yields after weak housing data as investors geared up for a policy meeting next week where officials are set to cut interest rates for the first time in a decade. While expectations of a 25 basis point rate cut are firmly baked into money markets, some investors are gunning for a 50 basis point cut. The Fed is widely expected to cut a total by nearly 75 basis points by the end of the year. "We are certainly seeing more concrete signals emerge from both the Fed and the ECB in terms of easing policy and only the question is how much will the Fed cut next week," said Ulrich Leuchtmann, the head of currency research at Commerzbank.
Dollar falls for a second day on U.S. rate cut bets
KONTAN.CO.ID - LONDON. The dollar slipped for a second day against its rivals on Thursday on the back of softer U.S. Treasury yields after weak housing data as investors geared up for a policy meeting next week where officials are set to cut interest rates for the first time in a decade. While expectations of a 25 basis point rate cut are firmly baked into money markets, some investors are gunning for a 50 basis point cut. The Fed is widely expected to cut a total by nearly 75 basis points by the end of the year. "We are certainly seeing more concrete signals emerge from both the Fed and the ECB in terms of easing policy and only the question is how much will the Fed cut next week," said Ulrich Leuchtmann, the head of currency research at Commerzbank.