The dollar in the world reached one-month highs awaiting US inflation data

The dollar in the world reached one-month highs awaiting US inflation data

He dollar reached on Tuesday its highest level in four weeksawaiting the report on inflation that is likely to influence the schedule of the first rate cut by the US Federal Reservewhile The euro was pressured by political uncertainty in the region.

The higher-than-expected increase in employment and the increase in wage inflation in the May report, published on Friday, raised fears that Inflation remains stable as long as growth remains strongwhat I would do less likely that the US central bank will cut rates in the coming months.

The operators lowered expectations of a first rate cut in Septemberwhich now have a 50% chance.

While Consumer Price Index (CPI) data will be published on Wednesdaybefore the Fed concludes its two-day meeting.

The market expects The central bank will keep interest rates unchanged, but Fed officials will update their forecastswhat is known as the “dot plot”.

Economists consulted by Reuters expect that headline consumer price inflation to slow to 0.1% from 0.3% last monthand that underlying price pressures remain stable at last month’s 0.3%.

Dollar, euro and other world currencies



He dollar index rose 0.3% to 105.44, its highest level since May 14. He euro fell 0.4% to $1.0719, its lowest level since May 2.

The single currency lost value concern that the advance of the Eurosceptics in the European elections and the call for early French elections could complicate the European Union’s attempts to deepen integration.

While, The Bank of Japan will conclude its two-day meeting on Friday, and economists expect the central bank to begin reducing its monthly bond purchases.

The dollar rose 0.08% to 157.14 yen. The collapse of the Japanese currency in late April to a 34-year low (160.245 yen per dollar) triggered several rounds of Japanese official interventions worth 9.79 trillion yen.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts