He dollar was stable globally on Monday, as investors analyzed U.S. economic data ahead of the U.S. monetary policy meeting. Federal Reserve (Fed) this week, and the escalation of geopolitical tensions in Middle East kept the appetite for risk at bay.
He dollar index, which measures the U.S. currency’s performance against a basket of six rivals, was little changed on Monday at 103.53 and remained near the six-week high of 103.82 reached last week. The gauge is headed for a 2% rise in January as traders temper expectations for early and deep interest rate cuts by the Fed.
Strong US economic data and comments from central bankers have led traders to adjust their expectations of a start to the bearish cycle in March, as they were betting after the Federal Reserve meeting in December. Depending on the tool FedWatch According to CME, markets are currently pricing the possibility of a rate cut in March at 49%, up from 86% at the end of December.
Investors’ attention this week will be squarely focused on the U.S. monetary policy announcement. Fed on Wednesday, in which the central bank is widely expected to keep rates unchanged, leaving the focus on the president’s comments, Jerome Powell.
Meanwhile, the euro It was down 0.1%, at $1.0838, and was headed for a drop of close to 2% for the month. Last week, the European Central Bank (ECB) kept interest rates at their record level of 4% and reaffirmed its commitment to fighting the inflation.
The pound sterling is trading flat at $1.2703, awaiting the announcement of the monetary policy of the Bank of England on Thursday, while the japanese yen strengthened to 147,865 units per dollarbut was headed for a drop of almost 5% in January, its weakest monthly performance since June 2022, as traders temper their expectations about when the Bank of Japan will abandon its ultra-easy policy.
On the geopolitical front, investors are also wary of rising risks after three US service members were killed in a drone airstrike on US forces in northeastern Jordannear the border with Syria.
The dollar in Uruguay
He dollar closed last week with a slight increase of 0.08% compared to Thursday, remaining at 38,986 pesos, according to the price of the Central Bank of Uruguay (BCU).
With this slight increase, the US currency added its third consecutive day to the rise, in line with the international context of recent days, so that it continues to reduce the monthly decrease, which now stood at 0.09% compared to the closing December 2023, when a dollar It was worth 39,044 pesos.
After a slight decline in 2023, the dollar began with ups and downs this year and its behavior is still far from what the market projects, according to the Economic Expectations Survey (EEA) that prepares the BCU, which is expected to close January at 39.40 pesos and climb to 41.40 pesos by the end of the year.
Source: Ambito
