The financial market is in motion this Friday, with fluctuations in the value of the dollar and of euroamid economic data that suggests a slowdown in inflation and expectations of changes in interest rates.
The less robust inflation figures, both in the United States and the eurozone, generate the perception that central banks may have concluded their efforts for raising rates to combat rising prices, leading traders to anticipate earlier cuts next year.
Goldman Sachs changed its forecasts and now estimates that the European Central Bank (ECB) could reduce rates in the second quarter of 2024, in contrast to its previous forecast of a cut in the third quarter of next year.
Dollar: the data that the market expects
During this Friday’s session, the speech scheduled for later by Jerome Powellpresident of the United States Federal Reserve, is eagerly awaited by investors, who are looking for signals about future interest rate policies in the country.
The day shows more moderate movements in the currency market, after the greater fluctuations observed during month-end operations the previous day, according to specialized analysts.
The dollar index, which measures the performance of the greenback against a basket of six major currencies, falls 0.2% to 103.3, after recording its worst monthly result in a year during November.
Mixed economic data in Europe has a limited impact on the euro. Although a survey reveals a slight improvement in the decline in manufacturing activity in the eurozone last month, it remains in negative territory. For its part, in the United Kingdom, despite a contraction in the manufacturing sector, an improvement is evident for the third consecutive month.
The euro shows an advance of 0.1%, trading at $1.08990, while the pound sterling also gains 0.3%, settling at $1.26665.
Regarding the Japanese currency, the dollar decreases by 0.2%, reaching 147.855 yen per dollar. This move takes the yen towards its third consecutive week of gains, moving away from the nearly 33-year low of 151.92 recorded in mid-November.
Source: Ambito
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