The strong US labor market data and the expectation that the figures of inflation Thursday’s stays elevated have scuppered bets on anything but high interest rates through 2023 and are pushing the dollar back closer to the 2002 high it hit last month.
The labor market in the United States slowed its recovery but hiring showed a solid recovery, despite the interest rate levels applied by the Federal Reserve to contain inflation. In September, 263,000 jobs were created and the unemployment rate fell to 3.5%, against 3.7% in the previous measurement.
Despite the recovery of the labor market, wages during this year they faced their main drop in purchasing power in 25 years.
The risk appetite was also affected by the fact that Russia followed attacking ukrainian cities on Tuesday in retaliation for an explosion that damaged the only bridge linking the Eurasian giant with the annexed peninsula of crimea.
“The general narrative is one of risk aversion,” he said. Francesco PesoleING currency strategist in dialogue with Reuters, citing the escalation of the conflict in Ukraine and the new US export controlswhich included a measure to prevent China from receiving certain semiconductors.
“This week the minutes of the Federal Reserve and the inflation of the United States will be publishedwhich will be quite important for reinforce expectations over one Fed hardliner and could continue to support the dollar,” Pesole added.
The and in meanwhile reaches the 145.86 units per dollar, just below the 24-year low of 145.90 it hit before the Japanese government stepped in to prop it up three weeks ago. Later he was trading at 145.68 units per dollar.
The euro quote with few changes at $0.9709following four days of losses that have pushed the coin closer to a 20-year low of $0.9528 hit on Sept. 26.
This Tuesday, the Bank of England acted again for stop the collapse of the public debt market, announcing an inflation-linked debt purchase measure through the end of the week. The data was added from labor market that showed the British unemployment rate fell to its lowest level since 1974 in the three months to Augustbut the drop was driven by a record rise in the number of people leaving the labor market.
A) Yes, British pound rises 0.3% after four days of falls to the 1,1062, after hitting its lowest level since September 29, at $1.0999.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
