Europe expects a rate cut at today’s monetary policy meeting, so the US currency could appreciate against the euro.
The world’s investors have their gaze divided between what is happening in USA with the dollar and the possible cuts in interest rates that the Federal Reserve (Fed); and at the monetary policy meeting of the European Central Bank (ECB), in which a drop in rates and new clues about their future path are expected. In Uruguay, Meanwhile, the US currency returned to the range of 39 pesos.
As has been the case in recent months, the focus has been on central banks, and investors are also grappling with the implications for the economy. Fed from several US data this week, which showed a moderation in employment growth, albeit alongside a rebound in service sector activity.
At the moment, the markets value the rate cuts of the Fed for this year, and it is very likely that the first will occur in September.
He ECB, For its part, it remains the focus of the day, and the euro was trading flat at $1.0871, just below the two-and-a-half-month high of $1.0916 reached earlier in the week.
A cut has long been expected at Thursday’s meeting, and the recent appreciation of the euro in front of dollar This has come as investors have reduced their expectations of further significant rate cuts this year, while this week they have slightly increased bets on monetary easing in the United States.
The dollar returns to the range of $39 in Uruguay
The dollar rose for the second consecutive day on Wednesday and recorded an additional 0.37% in its price, which allowed it to close the day at 39.069 pesos, according to the official price of the Central Bank of Uruguay (BCU). In this way, the currency reached its highest value since mid-April and managed to return to the long-awaited range of 39 pesos.
With this daily result, the US currency accumulates a positive variation of 0.71% so far in June; and it was also able to improve the sign of the annual performance, with an increase of 0.12% so far this year, since its price is 0.05 pesos above that registered after the closing of the last exchange day of 2023.
Among the reasons that boosted the local price, the strengthening of the dollar at a global level, as well as, particularly, the appreciation of Brazilian real.
Source: Ambito
