The expectation about the data inflation in USAwhich will be known this week and could decipher the path that the Federal Reserve (Fed) with its rates, it pushed the global dollar upwards.
He dollar indexwhich compares the greenback with a basket of six prominent currencies, was trading at 105.19 units, accumulating a decline of close to 1% in May.
Operators also keep a close eye on the and in, which fell to the levels of May 1, when it was suspected that the Japanese authorities had intervened. In its last quote, it lost 0.14%, to 156.45 units.
He euro was trading flat at $1.0797, up 1% so far this month, while the pound was unchanged at $1.2556, after falling to $1.2510.
The pound fell sharply after the UK’s chief economist Bank of England, Huw Pillsaid it is not unreasonable to believe that during the summer there could be enough confidence to consider interest rate cuts.
Operators are awaiting the publication on Wednesday of the Consumer Price Index (CPI) in the United States, to gauge which path the Federal Reserve this year following weaker-than-expected recent labor market data, and comments from monetary authorities indicating that further rate hikes are unlikely.
Money markets have revised downward their expectations for rate cuts from the Fed this year due to the rigidity of inflation and now foresee about 40 basis points of relief this year, compared to 150 at the beginning of 2024. According to the tool FedWatch CME, there is a 50% chance that there will be a first reduction in September.
“April US inflation data will probably be the most important of the week, especially after the market recently reacted sensibly to rather weak data, somewhat raising its expectations for rate cuts,” said Antje Praefcke. , of the Commerzbank.
The dollar in Uruguay rose for three days
He dollar opened the week higher in the Uruguayan exchange market after rising 0.05% this Monday and closing at 38,531 pesos, according to the official price of the Central Bank of Uruguay (BCU).
The US currency rose for three days and maintains its price with ups and downs within the range of 38 pesos.
He dollar It accumulates a monthly increase of 0.56% in May, although it has an accumulated depreciation of 1.26% at an annual level, after falling 0.49 pesos since the last exchange day of the year 2023.
Source: Ambito
