By Peter Nurse
Investing.com – The dollar loses positions this Thursday, consolidating after hitting 16-month highs after the minutes of the last Federal Reserve meeting pointed to the possibility of a faster rate of decline.
At 8:55 a.m. (CET), the, which tracks the evolution of this currency against a basket of six other major currencies, fell 0.1% to 96.733, just below the highs recorded on Wednesday at 96.938 , its highest level since July 2020.
The pair fell 0.1% to 115.35, not far from the highs recorded at 115.53, a level not seen since January 2017. The pair rose 0.2% to 1.33485 , the is up 0.2% to 1.1218 after falling below 1.12 on Wednesday and the is targeting a 0.1% rise to the 0.7204 level.
On Wednesday, those of the Fed meeting held in early November, in which the central bank agreed to start tapering, were published. They show that several monetary policy makers are open to the idea of accelerating the withdrawal of the bank’s bond purchase program if inflation remains high. This would probably lead to a more rapid implementation of the interest rate hike.
At the same time, the data indicates that personal income and expenses rose more than expected, while the private sector consumer price index (CPI), considered the Federal Reserve’s favorite indicator, rose in October at its fastest pace. fast since April and hit multi-decade highs in annual terms.
San Francisco Federal Reserve Chair Mary Daly has provided more reason to be optimistic about the dollar, saying Wednesday that it would make sense to accelerate the asset downsizing.
“We are finding increasing evidence of a new stretch of inflationary pressures in the United States, which fuels our conviction of a shift from the Fed to a more aggressive stance heading into 2022,” Nordea (ST 🙂 analysts say in a note.
Not much news is expected in the United States that will influence the currency markets this Thursday on the occasion of the Thanksgiving Day holiday, but those of the meeting of the European Central Bank in late October will be published.
“Despite the fourth wave [de Covid] In Europe, the ECB seems to hold the view that the PEPP plan [programa de compras de emergencia] it must conclude in March “, say the analysts of ING (AS 🙂 in a note.
On the other hand, the pair fell 0.3% to 12.0497, with the Turkish lira recovering somewhat from record lows earlier in the week due to President Tayyip Erdogan’s defense of recent rate cuts. of the central bank. The pair posted highs on Tuesday at the 13.45 level.
In addition, the pair is down 0.1% to the level of 9.1039 before the Riksbank meeting, with investors pending whether the Swedish central bank continues to plan to keep its official interest rates at zero until 2024. This comes after that the Swedish prime minister was forced to resign after her coalition partner refused to approve her draft budget.
The pair fell 0.1% to 328.67; Everything indicates that the National Bank of Hungary will raise interest rates on one-week deposits another 10 basis points to 2.60%.