The dollar remained lower for the second day of the week, while optimism remains for a possible rate cut by the Federal Reserve.
The currency closed this Tuesday at an average price of $3,884.84, standing at $9.39 below the TRMwhich for today was at $3,894.23. Additionally, the currency touched a maximum price of $3,891 and a minimum price of $3,876.20.
According to Bloomberg, Optimism that the Federal Reserve will begin cutting interest rates this year sent Treasuries higher on Tuesday.while US stock futures stabilized after Monday’s rally on Wall Street.
“In this environment of growth that is not recovering as much as we feared and potentially cuts, there are upsides to earnings going forward“said Beata Manthey, head of European equity strategy at Citigroup Inc., in an interview with Bloomberg TV.
Investors are gaining confidence that the Federal Reserve will be able to begin reducing high rateswhile companies present positive surprises in their profits.
“ANDhe market is taking a positive view on US jobs data and anticipates that the Federal Reserve will indeed be able to cut rates“said Arnaud Girod, head of cross-asset economics and strategy at Kepler Cheuvreux in Paris.
Oil steadied on Tuesday as weakness in the physical market offset concerns over Middle East conflictas Israel intensified its attacks in southern Gaza and a ceasefire agreement hung by a thread, Reuters reported.
Brent futures fell US$7 cents to US$83.26 a barrel, while those of West Texas Intermediate in the United States, WT, operated with little change, at US$78.48.
The Israeli army took control of the Rafah border crossing between the Gaza Strip and Egyptand Their tanks entered the southern city of Rafahas mediators struggled to reach a ceasefire agreement.
The truce remains elusive, and even if it is reached the question remains whether Houthi hostilities in The Red Sea would cease and the Suez Canal would reopen, significantly mitigating shipping risk across the region.“Tamas Varga of the PVM brokerage told Reuters. “I think the lack of optimism in recent days is more due to a real weakness in the physical markets.”