By Peter Nurse
Investing.com – The dollar loses positions this Thursday, consolidating just below its 16-month high, while the Turkish lira falls in anticipation of the last meeting of the country’s central bank.
At 8:55 a.m. (CET), the, which follows the evolution of this currency against a basket of six other major currencies, fell 0.1% to 95.775, after reaching the level of 96.226 on Wednesday, its highest level since July 2020.
The pair rises to the 1.1324 level, recovering from its trip below 1.13 for the first time since July 2020, it remains flat at 114.08, it is up 0.2% to 1.3508, and he points to a rise of 0.3% to the level of 0.7291.
The dollar has benefited in recent weeks from the market’s belief that the Federal Reserve will be quicker to act against rising inflation levels than many of its counterparts in advanced economies, a perception reinforced this past month by strong labor market data and retail sales.
European Central Bank President Christine Lagarde made it clear this week that she has no intention of raising interest rates ahead of time, while the Bank of Japan is expected to continue adding stimulus to its beleaguered economy, along with a major fiscal stimulus package to be released by Prime Minister Kishida.
The possible exception, among the G7 central banks, is the Bank of England, after the UK inflation spike in October pushed it to raise rates at its meeting next month.
The main economic report to be published this Thursday will be the weekly data for last week, which is expected to amount to 260,000 applications, a decrease from 267,000 the previous week, and new post-pandemic lows.
In Turkey, President Recep Tayyip Erdogan has continued to pressure the country’s central bank to lower interest rates, and the Turkish central bank is expected to deliver on its promise on Thursday, despite the weakening of the currency and high levels. inflation.
All but two of the 24 economists surveyed by Bloomberg believe Governor Sahap Kavcioglu will lower the benchmark for the third time in a row, after cutting his benchmark rates by 300 basis points in the last two meetings.
The pair rises 0.9% to the 10.7041 level in anticipation of a further rate cut. The lira has already fallen almost 30% against the dollar this year, and more than 15% this quarter alone, as Erdogan has intervened more directly in monetary policy.