© Reuters.
By Peter Nurse
Investing.com – The US dollar is gaining early in Europe on Friday, although it looks set to post a second straight quarterly loss ahead of key US inflation data.
By 09:00 AM ET (0900 GMT), the , which tracks the currency against a basket of six other major currencies, was up 0.1% at 101.860, not far from its early-February lows.
The index is down 1.3% year-to-date, extending a 7.7% decline in the fourth quarter of 2022.
The turbulence in the US banking sector, mainly, has led traders to reevaluate their view of future movements in the , and now believe that the prices are about to top out, which would erode the dollar’s yield advantage.
However, this view hinges on signs that the Federal Reserve is winning the battle against inflation.
The Federal Reserve’s favorite inflation indicator, the , will be published later this day, and everything indicates that the index, which excludes energy and food prices, will rise 0.4% compared to the previous month and 4.7% until February.
The pair remains mostly flat at the 1.0901 level, following the disappointing , after rising 0.5% on Thursday after strong numbers bolstered expectations that the pair will announce more rate hikes this year. .
The one for March will be published later in the day, and the expected annual increase of 7.1% could be favored by the publication of the German figures on Thursday.
The pair points to a rise of 0.1% to the level of 1.2392, after knowing that it grew in the fourth quarter of last year, with an increase in GDP of 0.1% compared to the previous three months, after contracting 0.3% in the third quarter, a smaller contraction than previously thought.
“The economy performed slightly better than expected in the second half of last year and subsequent data showed that the manufacturing, telecommunications and construction sectors performed better than previously thought last quarter,” Darren explains. Morgan, ONS statistician.
The , very sensitive to risk, remains flat at the level of 0.6706, the rises 0.4% to 133.12, while the falls 0.1% to 6.8645 after learning that Chinese business activity It grew at its fastest pace in more than a decade, although the recovery was uneven, as activity grew more than expected while growth slowed from the previous month.
