Related Post
By Peter Nurse
Investing.com – The US dollar lost positions early in Europe on Tuesday, reversing some of the overnight gains as positive growth data from China boosted risk sentiment.
By 08:05 AM ET (0805 GMT), the , which tracks the currency against a basket of six other major currencies, was down 0.1% at 101.707, after rising 0.5% overnight.
China’s post-crisis recovery appears to be firmly on track, after data released on Tuesday showed that the world’s second-largest economy has in the first quarter on a year-on-year basis, beating forecasts for growth of 4%, and posting a sharp acceleration from the previous quarter’s reading of 2.9%.
In addition, they have increased by more than 10%, registering maximums of almost two years, which reinforces the hopes that the recovery of the country after the pandemic continues its course.
This news has fueled optimism about the global economic recovery, to the detriment of the dollar, considered a safe haven.
The greenback had risen on Monday after learning that it increased it for the first time in five months, fueling expectations that it will raise interest rates again at its next meeting in May.
“As market conditions continue to settle a bit…it now looks likely that the Fed will make one last 25 basis point hike in May and then hit the pause button to wait out the effects of tightening credit conditions brought on by the banking turbulences of March”, have said the analysts of ING (AS:) in a note.
The pair is aiming for a 0.1% rise to the 1.0941 level, below the 1-year high recorded at 1.1075 last week, although everything points to further interest rate hikes this year. , since inflation continues to be well above its target.
The ECB could discuss changing its 2% inflation target, but only after inflation is brought down to that level, its president, Christine Lagarde, said on Monday.
The pair is aiming for a 0.2% rise to the 1.2392 level, after rising from 3.7% to 3.8% in February, a weaker than expected result. However, he is still expected to raise interest rates another 25 basis points at his meeting next month as inflation remains very high.
Elsewhere, the pair rises 0.5% to the 0.6732 level, as the latest Reserve Bank meeting showed that the bank could still raise interest rates further, despite the pause of April.
The pair fell 0.1% to 134.31, while the pair fell 0.1% to 6.8716, benefiting from positive growth data from China.
