Forex News

Dollar slipped slightly ahead of key US Inflation release

2024.11.13 05:40

Dollar slipped slightly ahead of key US Inflation release

Investing.com – The U.S. dollar slipped slightly Wednesday, falling from a six-month peak, ahead of the release of key US inflation data, which will provide more clues on the future path of interest rates. 

At 05:00 ET (10:00 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower to 105.850, after trading above 106 for the first time since early May.

US CPI looms large 

The dollar has been reaping the benefits of Donald Trump’s victory in the US presidential election last week, with the Republicans likely to gain full control of Congress, which would likely mean lower taxes and trade tariffs – policies that are seen as inflationary.

Traders are now looking ahead to the release of October’s US later in the session, a crucial gauge of inflation in the world’s biggest economy.

Economists expect headline price growth to have sped up to 2.6% last month on an annualized basis, compared to 2.4% in September, while the “core” reading, stripping out more volatile items like food and fuel, is seen at 3.3% year-on-year and 0.3% on a monthly basis, in line with September.

Fed policymakers will likely be keeping close tabs on the numbers as they attempt to gauge the path ahead for interest rates over the rest of this year and into 2025. 

“The strong dollar is currently pricing in a good deal of Trump’s policy mix, and data releases/dovish Fed comments might offer good opportunities to take profit in bullish dollar positions,” said analysts at ING, in a note.

German elections due in February

In Europe, traded largely unchanged at 1.0627, close to a one-year low, with the single currency hampered by the political uncertainty in Germany, as well as the potential for tariffs against Europe from the new Trump administration.

The bloc’s biggest economy is set to hold snap elections on Feb. 23, after the collapse of Chancellor Olaf Scholz’s governing coalition last week.

“There is not much additional risk premium being added to EUR/USD compared to what rates are suggesting, as markets are doubling down on expectations that the ECB will slash rates more than the Fed ahead of the tariff impact on growth,” added ING.

edged higher to 1.2750, just above Tuesday’s three-month low of 1.2719, in the wake of Bank of England cutting interest rates last week, for the second time this year.

“The main event in sterling markets today is a speech by Bank of England’s Catherine Mann, the most hawkish member of the MPC,” said ING. 

“Markets will be attentive to any comments about the implications of the recent budget for monetary policy and any colour on the latest jobs/wage figures. Given her arch-hawkish stance, we suspect she could stress – if anything – the inflationary aspect of the government’s spending boost and perhaps focus more on the sticky wage figure rather than the rise in the unemployment rate in September.”

Yuan recovers from recent lows

dropped 0.4% to 7.2064, after surging to a three-month high this week after Beijing’s latest round of fiscal measures largely underwhelmed, especially as China faces increased economic pressure from a Trump administration. 

rose 0.2% to 154.87, following uncertainty over Japan’s political and monetary policy outlook, amid bets that a gulf between U.S. and local rates will persist for longer under Trump.

 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 91,044.39 4.21%
ethereum
Ethereum (ETH) $ 3,224.19 2.07%
tether
Tether (USDT) $ 1.00 0.10%
solana
Solana (SOL) $ 218.69 6.71%
bnb
BNB (BNB) $ 658.96 8.52%
dogecoin
Dogecoin (DOGE) $ 0.400183 5.93%
xrp
XRP (XRP) $ 0.701428 6.40%
usd-coin
USDC (USDC) $ 1.00 0.19%
staked-ether
Lido Staked Ether (STETH) $ 3,223.96 1.99%
cardano
Cardano (ADA) $ 0.583095 9.47%
tron
TRON (TRX) $ 0.180782 1.76%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 6.32%
the-open-network
Toncoin (TON) $ 5.45 3.90%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,817.56 2.36%
avalanche-2
Avalanche (AVAX) $ 33.79 5.66%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 90,587.27 4.14%
sui
Sui (SUI) $ 3.42 14.70%
pepe
Pepe (PEPE) $ 0.000023 76.91%
weth
WETH (WETH) $ 3,222.54 2.01%
bitcoin-cash
Bitcoin Cash (BCH) $ 443.34 7.29%
chainlink
Chainlink (LINK) $ 13.66 2.17%
polkadot
Polkadot (DOT) $ 5.14 1.32%
leo-token
LEO Token (LEO) $ 7.74 6.47%
near
NEAR Protocol (NEAR) $ 5.37 4.10%
aptos
Aptos (APT) $ 12.03 1.51%
litecoin
Litecoin (LTC) $ 82.81 12.90%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,400.86 2.29%
uniswap
Uniswap (UNI) $ 8.76 3.48%
usds
USDS (USDS) $ 1.00 0.40%
crypto-com-chain
Cronos (CRO) $ 0.161473 0.33%
internet-computer
Internet Computer (ICP) $ 8.57 4.09%
bittensor
Bittensor (TAO) $ 549.84 2.37%
dogwifcoin
dogwifhat (WIF) $ 4.08 36.93%
stellar
Stellar (XLM) $ 0.125453 0.47%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.32 1.54%
ethereum-classic
Ethereum Classic (ETC) $ 22.69 4.19%
dai
Dai (DAI) $ 1.00 0.19%
whitebit
WhiteBIT Coin (WBT) $ 22.62 3.94%
kaspa
Kaspa (KAS) $ 0.129142 2.93%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.378857 2.39%
blockstack
Stacks (STX) $ 1.96 3.55%
render-token
Render (RENDER) $ 7.14 6.98%
bonk
Bonk (BONK) $ 0.00004 20.40%
okb
OKB (OKB) $ 45.74 5.71%
monero
Monero (XMR) $ 146.19 1.09%
aave
Aave (AAVE) $ 175.47 1.95%
mantle
Mantle (MNT) $ 0.771928 11.00%
arbitrum
Arbitrum (ARB) $ 0.628425 7.61%
filecoin
Filecoin (FIL) $ 4.12 4.20%