Price pressures are easing as US central bank’s fastest monetary policy tightening cycle since the 1980s dampens demand and bottlenecks in supply chains are alleviated.
“Three months of relatively subdued core inflation numbers are starting to trend (…) which could prompt the Fed to further slow the pace of tightening on February 1”said Sal Guatieri, chief economist at BMO Capital Markets.
The euro continues to find support in hardline messages from European Central Bank officials, four of whom on Wednesday called for further rate hikes.
The dollar came to lose 1% against the euro, its lowest level since April 21. It was then trading down 0.83% at $1.0845 and 0.56% against the pound at $1.22195. The dollar index fell 0.815% to 102.20 units, its lowest level since June 6.
The greenback hit a 6.5-month low against the Japanese yenwhich had been boosted by a Yomiuri report saying the Bank of Japan will review the side effects of its monetary easing at next week’s meeting and may take further steps to correct yield curve distortions.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
