The euro fell 0.2% and moved away from parity to settle at 0.99. This is despite the rise in rates by the European Central Bank (ECB) of 75 basis points, its highest rise in history.
For its part, the pound sterling also it fell 0.2% and stood at 1.15. The meeting of the Bank of England to define the continuity of monetary policy was postponed due to the death of Queen Elizabeth II. UK inflation fell for the first time since September 2021 and stood at 9.9% year-on-year. In addition, UK consumer confidence has entered negative territory for the first time since the pandemic lockdown in mid-2020.
The Australian dollar advances 0.1% and stands at 0.67 after it became known that employment in Australia recovered in August.
The yuan falls 0.1% and stands at 6.97 as China tries to recover its activity levels despite the Covid-19 lockdowns.
On September 21 will be the meeting of the fed to define at what level the interest rate will increase. The US inflation data released this week reaffirms this possibility: prices increased 8.3% in August which, although they were lower than the July record, rose above what was expected. This overlaps with the statements of the head of the Fed, Jerome Powellwho had advanced that he would insist on raising rates until inflation can be controlled.
In parallel, the head of the IMF, Kristalina Georgiev, expressed yesterday that “central banks must be persistent in the fight against generalized inflation”. He further added: “We need central bankers to be as stubborn in fighting it as inflation has been. If fiscal policy and monetary policy worked well, next year might be less painful.”
Source: Ambito
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