Signs of resilience in the United States economy lower expectations of rapid and sharp falls in interest rates.
The dollar was on track to rise for the second consecutive week this Friday, January 19, since the signs of resistance of the US economy and the reaction of central banks They led operators to lower expectations of rapid and sharp falls in interest rates.
The dollar against the other currencies of the world
Thus, during the day, The euro operates with little change at $1.0878like the dollar index, which is located at 103.38 units.
He yen, for its part, is trading flat at 148.02 units per dollar, after rising and then falling, after a report showed that the core inflation rate in Japan slowed to 2.3% in the year to December. This is the lowest annual rate since June 2022, reducing pressure on policymakers to take quick action.
The pound sterling subtracts 0.16%, au$1.2685. A report showed that UK retail sales suffered their biggest decline in three years in December.
And finally, Growing unrest in Chinese property markets made investors nervous and the yuan hit a near two-month low of 7,197 units per dollar, which attracted purchases by state banks to support it.
Weekly coin balance
He euro has lost 0.6% this week and helped the dollar index gain 0.9%. He and inmeanwhile, is the currency that fell the most: so far this year declined about 5%as tepid economic data and a strong earthquake undermined confidence that the Bank of Japan will raise rates.
“The message of the US activity data and central bankers is that markets are too aggressive on rate cuts in 2024, both in timing and magnitude,” says Westpac’s Richard Franulovich.
The analyst considers that “that, and a new episode of turbulence in China’s real estate and financial marketsthey make the dollar return to normal.”
Source: Ambito
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