Operators maintain their bet on a Fed cut in June despite the higher-than-expected inflation data.
He dollar was trading steady on Wednesday as traders ignored data from inflation higher than expected in USA and were still expecting an interest rate cut from the Federal Reserve in June.
He dollar indexwhich measures the price of the greenback against a basket of six currencies, rose 0.09% to 103.01 at the beginning of the day.
The pound sterling fell 0.05%, to 1.2785 dollars, after learning that the British economy grew again in January, after having entered a recession shallow in the second half of 2023. The euro It also fell 0.05% against the dollar, standing at $1.0920.
On the other hand, the dollar rose 0.2% against the and into 147.98 yen, after the Japanese currency suffered its biggest drop in a month on Tuesday following the governor’s slightly bleaker assessment of the country’s economy. Bank of Japan, Kazuo Ueda.
He Consumer Price Index (CPI) in USA rose 0.4% in February. The 3.2% year-over-year increase was just ahead of the 3.1% expected. The underlying numbers also beat estimates.
However, expectations of rate cuts from the Federal Reserve in June they have decreased only slightly, to 67% compared to 71% at the beginning of the week, according to the tool FedWatch of the CME Group.
He European Central Bank (ECB) will announce later in the day the outcome of discussions on the review of its operating framework, which has kept rates at zero or lower and flooded with liquidity to banks through bond purchases and loans.
The head of monetary policy at the ECB, Francois Villeroy de Galhaudeclared on Wednesday that it would likely begin cutting rates during the spring, between April and June 21, as “victory” against inflation was in sight.
Source: Ambito
