The global dollar rose in anticipation of Donald Trump’s inaugural speech

The global dollar rose in anticipation of Donald Trump’s inaugural speech

He global dollar maintained its level against yen on Friday, but ended the week lower after a six-week streak of gains, as investors turn their attention to the presidential inauguration of donald trump and waited for the policies of the incoming government in USA

The greenback rose 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.

The level of the dollar against the yen

He yen posted 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 rose more than 1% against the dollar this week, reversing last week’s decline, and hit a one-month high of 154.98 per dollar early Friday.

Sources also told Reuters that the central bank is likely to raise rates next week, barring any market shocks when Trump takes office.

“The yen is going to remain fairly pegged to US rates,” he said. Brad Bechtel global head of foreign exchange at Jefferies. “I think this cooling we’ve seen this week has helped relieve pressure on the dollar and the yen. The Bank of Japan looks set to raise rates next week and, at the margin, that will be positive for the yen. But since the interest rate differential remains very wide, it is difficult for the dollar and the yen to really move lower in a meaningful way,” he noted.

For its part, the pound sterling fell 0.6% to $1.2166, not far from the 14-month low it hit on Monday, 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 fell 0.26% to $1.0276. That left the dollar indexwhich measures the US currency against six other units, with an increase of 0.34% to 109.33, far from a maximum of more than two years touched at the beginning of the week.

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 5.26% to $105,404.13, on Friday, amid hopes in the crypto industry that the incoming Trump administration will mark a change in crypto policies. cryptocurrencies.

Source: Ambito

Leave a Reply

Your email address will not be published.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

Latest Posts