Dollar rises after sales
2022.12.12 03:52
Dollar rises after sales
Budrigannews.com – As traders began the week on a cautious note ahead of the final Federal Reserve policy-setting meeting of the year and a crucial reading of U.S. consumer inflation, early Monday trade in Europe saw the U.S. dollar strengthen.
The, which compares the dollar to a basket of six other currencies, rose 0.2% to 104.695 at 03:05 ET (08:05 GMT).
On Wednesday, the U.S. central bank will conclude its meeting, and it is widely anticipated that it will increase interest rates by 50 basis points rather than the 75 basis points it has increased in each of the previous four meetings in order to combat inflation at historic levels.
The Secretary of the U.S. Treasury made a prediction on Sunday that inflation in the United States would be significantly lower in 2023. However, data on Friday showed that inflation in the United States had increased more than anticipated last month, indicating that inflationary pressures will continue and that the Federal Reserve may continue to raise interest rates.
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In advance of the Fed’s final discussions, November’s U.S. data are due on Tuesday. The headline annual figure is expected to fall to 7.3%, while the is expected to fall to 6.1%.
traded mostly flat at 1.0530, with the also expected to give a 50 basis point increase later this week. After two straight increases of 75 basis points, the pace of tightening has slowed.
In November, for the first time in 18 months, the Eurozone saw a slowdown, raising hopes that the sky-high price growth is over.
However, the level was 10%, which is five times the ECB’s target for inflation. As a result, policymakers are likely to want to sound hawkish even though the region appears to be headed for recession in the new year.
In a note, analysts at ING stated, “Our base case is still that EUR/USD will struggle to trade sustainably above 1.0600, and is mostly facing downside risks into year-end as the dollar could regain some ground on global risk uncertainty and rebounding energy prices.”
also fell to 1.2252, supported to a degree by data showing that the grew in October for the first time in four months, up 0.5 percent from September, which was impacted by Queen Elizabeth II’s funeral.
However, as the UK moves closer to a recession, GDP in the three months through October was still 0.3% lower than it had been in September.
As it tries to combat well into double digits, the meets on Thursday and is expected to raise its key interest rates once more.
after data showed that the country’s GDP increased more than anticipated, indicating increased economic pressure in the coming months, rose 0.1% to 136.69.
The risk-sensitive decreased by 0.2 percent to 0.6778 and increased by 0.2 percent to 6.9745. The yuan was weighed by a significant rise in local COVID infections, which may delay a broader reopening after China reduced some restrictions last week.
