The US Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank will announce their decisions on interest rates.
The British pound rose 0.04% to $1.2264after falling to a session low of $1.2207, and losing 0.1% against the euro, at 86.01 pence, after data showed the British economy rebounded in October’s funeral holiday. of Queen Elizabeth, but still pointed to a bleak picture.
The euro was down 0.01% at $1.0549. Europe’s single currency has gained nearly 8% so far in the fourth quarter as investors trusted the ECB to stick with an aggressive rate-hike policy.
Those expectations have softened somewhat, with money markets showing the ECB is most likely to raise rates by just half a percentage point this week.
The Federal Reserve is expected to raise rates by the same amount after a series of 75 basis point hikes, especially given the tightness of the labor market and the reasonable resilience of the economy.
Data on Friday showing that US producer prices rose 7.4% year-on-year in November, compared with forecasts for a 7.2% rise, reminded investors how difficult it is proving to stem the inflation.
November consumer inflation data is due on Tuesday and is expected to show an increase to 6.1% in the core reading, which excludes food and energy prices, down from 6.3% in October.
Against the yen, the dollar was up 0.8% at 137.66 yen. The yuan in foreign markets was broadly stable at 6.9782 to the dollar, further pressured by concerns about a possible surge in COVID cases as China eases its strict COVID-19 restrictions.
Source: Ambito
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