Although the US inflation started to decline from 9.1% registered in June which was a record in 40 years – and reached 8.2% in September, the index continued to be high.
In September, the head of the Fed, Jerome Powell reaffirmed that the FED’s goal is to “reduce inflation to 2%”.
The dollar Index, which measures the performance of the US currency against a basket of six currencies, down 0.2%, to 111,115though still close to Tuesday’s high of 111.78, its highest level since Oct. 25.
Faced with the weakening of the dollar, the euro and the pound sterling rise to 0.9889 and 1.1502 dollarsrespectively.
The Bank of England will announce its monetary policy decision on Thursday, and the markets expect an increase of 75 basis pointsfollowed by a reduction to a rate of 50 basis points in December.
The and in, which has fallen 28% against the US dollar this year, was outperforming as traders eyed possible intervention around the Federal Reserve meeting. japanese currency up 0.8% to 147.07 units per dollar.
The Brazilian real has also been closely watched after the Tuesday hit a four-week high of 5.08 units per dollarafter the government of President Jair Bolsonaro said that the transition would begin to the government of Luiz Inacio ‘Lula’ da Silva Y allayed concerns about political instability.