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© Reuters.
By Peter Nurse
Investing.com – The dollar fell slightly at the beginning of the trading day in Europe this Friday, consolidating after the strong gains of the previous day and awaiting the release of key data on employment in the United States, which could influence in the opinion of the Federal Reserve on the rise in interest rates.
At 8:55 am (CET), the, which tracks the currency’s performance against a basket of six other major currencies, was down 0.1% to 94.302, after rising 0.5% on Thursday. Thus, the dollar closed the week in positive territory, rising 0.2%.
In addition, the pair rose 0.1% to the level of 1.1562, after falling 0.5% in the previous session, while the pair fell 0.1% to 113.68.
The Federal Reserve announced the reduction of its bond buying program earlier this week, as expected, but added that it would be “patient” when deciding when to raise its overnight benchmark interest rates. .
Although the market considers that these statements have been unambitious, the Federal Reserve is still seen as closer to raising its rates than many of its counterparts.
European Central Bank President Christine Lagarde on Wednesday objected to market bets on an early rate hike, saying it was highly unlikely to occur in 2022. Industrial production data for September from, and not they have met expectations, according to figures released this Friday.
The Bank of England decided to remain calm on Thursday, surprising the market, citing concerns about future growth. This caused it to plummet 1.4% in the previous session and on Friday it only recovered 0.1%, to the level of 1.3506, putting it on the way to its worst week in the last 11.
“Those responsible for monetary policy have chosen, we sensibly believe, to wait for more information on how the recent end of the cut plan has developed,” analysts at ING (AS 🙂 said in a note.
The Federal Reserve also cited the need to look at a stronger labor market before starting to move interest rates. With this in mind, the publication of the official monthly employment report of the United States that is published this Friday will be the center of all eyes.
Economists expect the US Non-Farm Employment Report to show a 450,000 job increase in October, following a 194,000 increase the previous month.
“The focus will be especially on the median hourly pay figures, which appear to be approaching the 5.0% mark; the more aggressive members of the Fed could use them (along with any nonfarm employment report readings that exceed the forecasts) to continue advocating against the “temporary inflation” discourse, “adds ING.
