This trend impacts the dollar index, which is retreating from its nearly one-year high reached in early October, when U.S. economic data consistently exceeded expectations.
Andrew Bailey, governor of the Bank of England, said Monday that it is “too early to consider rate cuts” in the United Kingdom.
The global financial picture shows a strengthening yen against to the dollar for the fourth consecutive day this Tuesday, a movement that reflects investors’ anticipation of the Bank of Japan’s possible decision to tighten its monetary policy next year, in contrast to a likely trend softer of the United States Federal Reserve.
The US currency reaches its weakest point since mid-September against the Japanese yen, touching 147.16 yen, and subsequently registers a decrease of 0.61%, reaching 147.45.
The dollar index, which measures its value against a basket made up of six major currenciesexperienced a fall, reaching its lowest level since the end of August, marking 103.17 units before falling slightly 0.13% to 103.32.
Dollar: the data observed by the market
Jane Foley, Rabobank’s head of currency strategy, says: “There is a lot of expectation, and is gaining momentum, regarding the possibility of the Bank of Japan abandoning its extremely loose monetary policy at some point, possibly next year, ending negative interest rates.”
The performance of the Treasury bond US declines on speculation that the Federal Reserve will cut rates next year after inflation weakened in October.
This trend impacts the dollar indexretreating from its nearly one-year high reached in early Octoberwhen economic data in the United States consistently exceeded expectations.
As for the euro, it reaches its highest level since mid-August, reaching $1.0966, and then remains stable at $1.0944. In parallel, the pound sterling advanced 0.2% to $1.253, after hitting a two-month high of $1.254. Andrew Bailey, governor of the Bank of England, said Monday that it is “too early to consider rate cuts” in the United Kingdom.
Source: Ambito
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