He global dollar fell from its new six-and-a-half-month high and the Japanese yen fell to its lowest level since July, boosted by calls “Trump operations” but appeased after knowing the inflation of USAfundamental data for the monetary policy decisions of the Federal Reserve (Fed).
He index dollar —which measures the performance of the greenback in relation to a basket of six other currencies of international relevance— rose for the fourth consecutive session, 0.1% to 106.12 units, before the inflation data corresponding to October was published . The currency is still reaping the benefits of the Republican’s victory donald trump in the US presidential election last week.
At the same time, investors are discounting debt reduction policies. taxes and new duty trade of the incoming administration, measures that are considered inflationary and that could boost the Federal Reserve to limit the scope of your flexibility of interest rates; which pushes up the value of the currency while the Republicans moved a little closer to gaining full control of the Congress, which would give the president-elect more power to push his agenda.
“There is still room for more gains from dollar”, told Reuters Mitul Kotecha, Head of FX and Emerging Markets Macro Strategy at Barclays. The full magnitude of threatened U.S. tariffs on global imports, potential fiscal stimulus through tax cuts and deregulation, as well as data pointing to continued U.S. economic strength next year are factors favoring the dollar, he added.
However, the report of Consumer Price Index (CPI) October showed a monthly variation of 0.2%, less than the 0.3% expected by analysts, and a sign of a new slowdown in the increase in prices. In this way, annual US inflation reached 2.6% year-on-year, which still gives air to the Fed to move forward with new interest rate cuts for the remainder of the year.
The president of the Federal Reserve, Jerome Powell, He is scheduled to speak this week, ahead of wholesale price data on Thursday and retail sales on Friday.
Markets currently assign a probability of around 60% of another quarter-point cut by the Fed in December, below the 84% of a month ago, according to the tool FedWatch of CME Group.
On the other hand, the bitcoin It halted its record rise, falling about 1% to $87,428 after hitting an all-time high of $89,998 on Tuesday. While wholesale inflation Japan accelerated in October to the fastest annual pace in more than a year, complicating the decision by the Bank of Japan (BoJ) on when to raise interest rates.
The dollar in Uruguay, unstoppable
Meanwhile, in Uruguay, he dollar rose 0.35% compared to Monday and closed at 42,469 pesos, according to the price of the Central Bank of Uruguay (BCU), so that the greenback advances unstoppably and reached its highest value of the year, breaking highs of almost 32 months.
Meanwhile, the US currency has accumulated an improvement of 1.97% so far this month, driven by the victory of donald trump in USA and the devaluation of real in Brazil, while the appreciation reaches 8.83% in the accumulated year.
Source: Ambito
