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Tuesday, March 28, 2023

The super dollar hits lows since April, attentive to the ECB’s decision

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He dollar index, that compares the greenback with a basket of six outstanding currencies, lost more than 1% on the eve, down to a new nine-month low. This Thursday it fell 0.1% to 100,945 units, its lowest value since April last year.

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The pound sterlingwhich advanced 0.47% on Wednesday, loses 0.3% and operates at $1.2338, and the dollar recedes compared to his Japanese counterpart, 128.07 yens, its minimum in two weeks.

The euro hit $1.1034 in Asian trade, its highest level since April 4, after gaining 1.2% on Wednesday. In its last listing it gains 0.1% and is trading at $1.0999, virtually unchanged on the day, as attention focused on the ECB meeting.

The sharp overnight drop in dollar came after Fed Chairman Jerome Powellsaid in a press conference after the meeting that “the disinflationary process has begun“, although he also noted that rates will continue to rise and that there are no cuts in sight.

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“It was kind of a relief… that there was nothing that really seriously challenged the prevailing view of the market,” he said. ray attrill, of the National Australia Bank (NAB) in dialogue with Reuters. “(Powell) said that rates are going to have to be tight for some time, but that doesn’t deter the market from saying some time might be six months instead of two years.”

The ECB will announce a new interest rate hike this afternoon. From the market they expect that I took it from the current 2% to 2.50%. After the entity’s announcement, its president, Christine Lagarde, will give a conference.

The YoY inflation in European countries that adhere to the common currency fell for the third consecutive month and closed at 8.5% in Januarysupported by a slowdown in energy pricesthe European statistics agency Eurostat announced on Wednesday.

He Bank of England (BoE) it also meets on Thursday and will communicate its decision on the rates. The markets expect a rise of half a point from both entities.

Source: Ambito

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