He dollar continues its downward trend and nears its lowest level in 15 months in front of the main foreign exchange. Investors await further bearish signals after from the cooling of inflation in the United States last week.
The dollar index, which measures greenback fortress Compared to a basket of six currencies, it stands at 99,587, falling close to last Friday’s low of 99,574, which represents its lowest level since April 2022.
During last weekthe index experienced its worst performance in 2023 due to the decrease in inflation in the US, with consumer prices registering the smallest annual increase in more than two years. This reduces pressure on the Federal Reserve to keep raising interest rates.
Dollar: the decision of the Federal Reserve
money markets have already heavily discounted a 25 basis point hike by the Fed at its next policy meeting later this month, but rates are expected to decline again in December.
Francesco PesolING, currency strategist, said: “In the short term, I’m not sure the dollar can go much further. The momentum is clearly bearish, but at the same time, it’s starting to look a bit stretched,” referencing recent multi-month highs hit by the euro and sterling.
The eurofor its part, reaches a new 17-month high against the dollar, reaching $1.1276 in early European trading. Markets anticipate a 25 basis point increase from the European Central Bank when he announces his monetary policy on July 27. However, the prospects for a further increase in September are unclear due to the slowdown in economic activity in the Eurozone in June.
On the other hand, Sterling rises 0.3% to $1.3115approaching the high reached last week of $1.3144, which represents its highest level since April 2022.
the yen also shows strength, registering an increase of approximately 0.4% compared to the dollar, with an exchange rate of 138.215. Investors are awaiting the Bank of Japan’s upcoming monetary policy meeting, where a possible gradual withdrawal of its ultra-loose monetary stance is expected.
Source: Ambito
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