© Reuters
By Peter Nurse
Investing.com – The dollar gains positions this Friday, especially against the euro, as traders focus on the relative speed with which major central banks are expected to respond to rising inflation levels with rising interest rates .
At 8:30 AM (CET), the, which tracks the currency’s performance against a basket of six other major currencies, rises 0.1% to 95.612, just below its recent 16-month highs. .
The pair is down 0.1% to 1.1354, heading for a weekly loss of around 0.8% despite recovering after falling below 1.13 for the first time since July 2020.
The pair rises 0.1% to the level of 114.35, the pair points a rise of 0.1% to 1.3505 after the publication of solid data for, and the, very risk-sensitive, remains practically unchanged at 0.7282.
The latest proof of the growing strength of the US economic recovery came Thursday with the weekly report, the latest data on the state of the economy, which indicated that jobless claims declined in early November to record 20 month minimums.
This recovery in the labor market has come at the same time that consumer inflation has risen to levels not seen in three decades, fueling market expectations that the Federal Reserve will act faster than many of its peers.
The president of the European Central Bank, Christine Lagarde, struggled earlier this week to calm market expectations of an early rise in interest rates. Concerns that Europe appears to be on the brink of a fourth wave of Covid-19 infections has contributed to the view that the ECB will be relatively late for the rate hike party.
This is despite the fact that German producer price inflation figures have shown that prices rose another 3.8% in October, bringing the annual rate of inflation for factories in Europe’s largest economy to 18.4%.
“EUR / USD continues to offer a low-key performance and has not moved away from the 1.1300 support level,” Bank of England analysts said in a note. “It has probably not been helped by the news of the record number of Covid cases in Germany, which could take a toll on the recovery of the service sector just as the manufacturing sector struggles with supply chain problems.”
The economic data agenda is fairly clear this Friday, and the focus is likely to be on a number of central bank spokespersons, with statements by the president of the European Central Bank, Christine Lagarde, the Bank of England economist, Huw Pill, and Federal Reserve officials Christopher Waller and Richard Clarida, as the most prominent.
Separately, the pair rose 0.8% to 11.0787, adding to Thursday’s strong gains after Turkey’s central bank cut interest rates by another 100 basis points, giving in to pressure. of President Recep Tayyip Erdogan.
Thursday’s cut leaves interest rates at 15% and about 500 basis points below the current inflation rate.
The pair rose 0.1% to 15.5856 after the South African central bank raised its buyback rates to 3.75% from a record low of 3.5%. This is the first rise since November 2018 and follows last year’s 300 basis point adjustment, when the country was trying to cope with the ravages of the pandemic.
The pair is down 0.1% to 6.3811 after China’s central bank warned speculators to avoid making one-way bullish bets on the yuan, an attempt to prevent the Chinese currency from rising. too quickly. The yuan has risen more than 2% against the dollar so far this year, one of the few emerging market currencies to keep pace with the greenback as the Federal Reserve prepares to tighten monetary policy in the US. world reserve currency.
