The data was known one day after the figures for US inflation showed that the consumer prices slowed down, but they were still stable. Data from the beginning of the month also showed that the job growth in the United States it accelerated sharply in January, pointing to a resilient economy.
However, the question that market watchers are asking is How far can the economy continue to hold up?especially when the rates go up much more than many thought at first.
“The data is being strong and is leading people to rule out the ‘catastrophic recession’ scenario‘ that everyone expected at the beginning of the year, but I’m not sure that a CPI and a retail sales data is enough for everyone to think that everything is going well again in the economy,” he said Michael Brown, TraderX strategist in dialogue with Reuters.
He interest rate futures market shows that US rates could reach a maximum close to 5.25% in Julybefore dipping to 5% by the end of the year.
He dollar index US falls 0.1% to 103.67after hitting a six-week high of 104.11 the day before.
The expectations about US monetary policy have changed drastically even since the beginning of the month. On February 1, markets expected a high of 4.83% in July, with a drop to 4.5% by the end of the year.
With the decline of the dollar, The euro rises 0.2% to $1.07095, after hitting a six-week low earlier in the week. Nevertheless, remains 11.5% above the 20-year low which reached the end of September.
The Sterling was up 0.21% at $1.2064after losing more than 1% on Wednesday.
For his part, he yen was higher across the board, gaining 0.3% against the greenback at 133.73 units per dollar, and adding 0.1% against the euro at 143.16 units. Yen traders are awaiting the speech of Kazuo Ueda, candidate to become the next governor of the Bank of Japan, at a confirmation hearing in the lower house of parliament on February 24.
He yuan China in international markets remained stable at 6,864 units per dollararound its weakest level in six weeks
Source: Ambito
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