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© Reuters.
By Peter Nurse
Investing.com – The US dollar lost positions at the start of trading on Thursday in Europe, extending the previous session’s selling after minutes from the latest Federal Reserve meeting signaled a slowdown in future price gains. types.
By 09:05 AM ET (0905 GMT), the , which tracks the currency against a basket of six other major currencies, was down 0.1% to 105.933, after falling 1%.
The dollar was sold after the latest Federal Reserve meeting revealed that a “substantial majority” of policymakers hoped it would soon be appropriate to slow the pace of rate hikes.
The Federal Reserve raised interest rates by three-quarters of a percentage point earlier this month, for the fourth time in a row, in an effort to rein in rising inflation, but the minutes confirmed expectations of a 50 basis point hike in early December. december.
The pair is aiming for a 0.1% rise to the 1.0407 level, benefiting from the selling of the dollar as traders await the release of data on the latest European Central Bank meeting later in the day. .
The has soared above 10% in October, but those for November point to the region entering recession, creating a dilemma for ECB policymakers.
He will surely raise interest rates considerably, although how far this will ultimately go will depend on how the economic situation develops, the director of Germany’s Ifo economic institute said on Tuesday.
It will also be of interest as traders are watching the degree of business confidence in the eurozone’s largest economy.
The pair rises 0.2% to the 1.2078 level, extending gains of 1.5% from the previous day after preliminary data on the currency beat expectations, although it still pointed to an economic contraction.
Sterling has rallied strongly since hitting a record low of 1.0327 in September, when the short-lived Truss government unveiled plans for big unfunded tax cuts.
Elsewhere, it fell 0.6% to 138.79, with the yen hitting near a three-month high, benefiting from the sharp drop in US Treasury yields following the release of the Fed minutes.
The risk-sensitive , notes a 0.3% rise to 0.6748, while the rises 0.1% to 0.6245, extending gains after he raised interest rates by 75 basis points. on Wednesday, the biggest rate hike in its history.
The pair is down 0.3% to the 7.1485 level after the Chinese government announced a bailout package for its troubled real estate sector, while COVID-19 cases continue to rise.
El falls 0.2% to 10.4379 ahead of the Swedish central bank’s latest monetary policy meeting, where El is expected to raise interest rates to try to stem a higher than expected rate.
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