The market evaluates the possible impacts that the decisions of the next government of President-elect Donald Trump will have.
He global dollar rose this Tuesday before the data inflation of USA that could offer clues about the path of monetary flexibility of the Federal Reserve, As analysts assess the likely impact of policies donald trump when he begins his second term as president of the United States.
Money markets are pricing in an 86% chance of a 25 basis point rate cut by the Fed. United States Federal Reserve next week, but some analysts warned that Fed hawks could have more say in upcoming decisions.
“The (median) consensus of the Fed will be to tilt the outlook in a more hawkish direction than in September or November,” Thierry Wizman, global currency and rates strategist at Macquarie, told Reuters.
He US dollar was up 0.2% at 151.55 yen, after previously rising to 151.71 yen for the first time since Nov. 28. He dollar indexmeanwhile, which measures the currency against the yen and five other major currencies, rose 0.23% to 106.40. He euro, Meanwhile, it fell 0.26% to $1.0525.
Wizman added that several key factors are likely to influence the company’s future moves. Fed: the inflation potential arising from the policies of the next administration, the recent slowdown in the pace of disinflation, a unemployment rate lower than expected and signs of exuberance in the US financial markets.
Cuts in the old continent
Market participants see little action ahead of a busy second half of the week with US data and the US policy meeting. European Central Bank.
A quarter point cut by the ECB It is already planned, but investors will focus on the communication, which could provide clues about the central bank’s future moves. The euro falls 0.26% this Tuesday to $1.0526.
Analysts warned that the ECB could eliminate the reference to the need to keep monetary policy rates “sufficiently restrictive,” while the president Christine Lagarde could say at the press conference that inflation is on track to fall towards the target.
Source: Ambito
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