He global dollar was trading steady on Friday, but was on track to end the week lower after a six-week streak of gains, as investors focused their attention on the presidential inauguration of donald trump and waited for the policies of the incoming government in USA
The global dollar has risen in recent weeks thanks to the increase in Treasury bond yields, reflecting expectations that President-elect Trump’s policies could boost inflation when the U.S. economy is already strong, Reuters reported.
But bond markets got relief from a relentless sell-off after weaker U.S. data. inflation of the United States on Wednesday, in addition to comments from the governor of the Federal Reserve (Fed)Christopher Waller, on Thursday, who said three or four interest rate cuts were still possible this year if the data supported it.
This led markets to increase their bets on Fed rate cuts this year, putting some pressure on the dollar ahead of the Republican’s return to the table. White House on Monday.
Investors now await Trump’s inaugural address on Monday to get a better idea of his policy measures, as a volatile period for markets. “What happens next will depend on what we hear, what it does and the policies it implements in its first weeks,” said Fiona Cincotta, senior market analyst at City Index.
He yen was headed for its best weekly performance in more than a month, as expectations rise that the Bank of Japan (BoJ) raise rates next week, putting the dollar on the defensive.
The Japanese currency has risen more than 1% against the dollar this week, reversing last week’s decline. This Friday it depreciated 0.37% and stood at 155.69 per dollar, after hitting a one-month high of 154.98 per dollar on Friday.
Sources also told Reuters that the central bank is likely to raise rates next week, barring any market shocks when Trump takes office.
For its part, the pound sterling fell 0.35% to $1.2194, not far from the 14-month low it hit on Monday. British retail sales unexpectedly fell in December, according to data on Friday that raised the risk of a economic contraction in the fourth quarter.
He euro It remained stable at $1.03. That left the dollar indexwhich measures the US currency against six other units, up 0.1% at 109.08, far from a more than two-year high hit at the start of the week.
The index is expected to fall about 0.5% for the week, which would snap a six-week winning streak.
He chinese yuan remained virtually unchanged at 7.3290 per dollar after data showed that Chinathe world’s second-largest economy, grew 5.4% in the fourth quarter, significantly exceeding analyst expectations and putting growth for the full year 2024 at 5%, right in the middle of Beijing’s target.
Bitcoin rose 2% to $102,246 on Friday, amid hopes in the crypto industry that the incoming Trump administration will mark a change in crypto policies. cryptocurrencies.
Source: Ambito
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