the super dollar fell this tuesday april 11as investors wait for US inflation data to be released on Wednesday, looking for signs that price pressures are easing and what could it mean for rate increases of interest from the Federal Reserve.
Consumer price data is expected to show that headline inflation rose 0.2% in March, while core inflation rose 0.4%.
“A lot of traders are focused on these inflation data,” said Edward Moya, a senior analyst at OANDA in New York. “Everyone is trying to get a sense of whether the disinflation process returns and whether this complicates what the Fed does.”
The Fed is considered likely to raise rates by an additional 25 basis points at its meeting on May 2-3., before a hiatus in June. The markets are also assessing a rate cut for the end of the year in light of an expected recession, although the monetary authorities have emphasized the need to keep rates high to reduce inflation.
Strong March jobs data has added to expectations that the US central bank will complete another rate hike. Data on Friday showed that employers added 236,000 jobs, while the unemployment rate fell to 3.5%.
New York Federal Reserve Chairman John Williams said Tuesday that the prospect of the Federal Reserve raising its benchmark interest rate just one more time and in a 25 basis point increment is a useful starting point, but that the political path of the central bank will depend on the data that arrives.
For his part, the president of the Chicago Fed, Austan Goolsbee, stated that the US central bank should be cautious when raising rates in light of recent banking tensions, noting that a decline in bank lending would help quell inflation and leave less work for monetary policy.
The dollar index lost 0.3% to 102.20, and the euro gained 0.41% to $1.0906.
The note rose against the yen, following a rally on Monday when new Bank of Japan Governor Kazuo Ueda indicated he was in no rush to scale back his massive stimulus. The dollar gained at the time of writing this article 0.08% against the Japanese currency at 133.73.
In cryptocurrencies, Bitcoin broke above the key $30,000 level for the first time in 10 months, improving 1.9% on the session, to $30,219.
Source: Ambito
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