He price of the dollar in the world this was heading Friday March 8 to its biggest weekly drop since mid-December ahead of US payroll data, while Federal Reserve (Fed) Chairman Jerome Powell appeared more confident in cutting interest rates in the coming months.
Powell stated that Fed “not far” from confidence needed to cut rates. Currencies tend to weaken if central banks cut rates.
He dollar index advanced 0.08%to 102.84 units, but was still on track for its biggest weekly decline since mid-December, down nearly 1% against a basket of six major currencies.
A key piece of information that the market expects
The key information for this Friday is the US jobs reportwhich could confirm or confound market expectations for an inflation cut in June. Economists expect the United States to have created 200,000 jobs, up from 353,000 in January.
“An online report with the 200,000 consensus for nonfarm payrolls growth would certainly keep the Fed in its holding pattern,” said Padhraic Garvey of ING. “The data will be decisive in determining the direction of the markets in the future, but it seems that the rates markets have been preparing for a much weaker number.”
As the euro in front of dollarthere were indications that the governing council of the European Central Bank (ECB) had begun to debate an appropriate timetable for monetary policy easing. Thursday, The ECB kept rates at their record level of 4%while cautiously laying the groundwork for lowering them later in the year, stating that it had made good progress in reducing inflation.
The euro fell 0.18%, to $1.0929, after hitting an almost two-month high of US$1.0956, returning to the center of a range it has maintained for a year. In the week it has risen about 0.9% against the greenback.
He and in won a 0.29% against the dollar, to 147.64 units, after reaching its highest level in more than a month. In the week accumulates an improvement of 1.6%its largest percentage increase since December.
Source: Ambito
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