The US dollar weakened on Monday, extending its declines from Friday after expectations for a massive NFP number were proved incorrect. The pound edged above $1.22 momentarily before pulling back into the New York close. The move in cable has been significant considering it was trading in the bottom half of the $1.18s on Friday morning.
The EURUSD pair also marched higher, trading up to $1.0750, a multi-month high. The US dollar remains pressured as investors believe the Fed has little room to move rates to the upside now. Expectations are for a period of stability now, where rates will remain at these levels for several months while the Fed analyse their impact on the economy.
Written by Viv Savani. 8:04am, January 10th 2023
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