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© Reuters.
By Peter Nurse
Investing.com – The US dollar loses positions overall at the beginning of the trading day in Europe this Wednesday, reversing some of its previous gains on the increase in the yield of Treasuries, as traders await the release of the minutes. from the last meeting of the Federal Reserve looking for clues about the timing of its expected tightening of monetary policy.
At 8:55 a.m. (CET), the, which follows the evolution of this currency with respect to a basket of six other major currencies, fell 0.1% to 96,210, remaining close to its one-week highs recorded on Tuesday.
“A rally to 95.50 or 96.50 will signal the next directional move in the index, although if US bond yields hold firm, the greenback appears to continue to outperform major currencies,” says Jeffrey Halley, OANDA analyst.
The yield on US Treasuries fell slightly this Wednesday, following strong gains on Tuesday, to reach pre-pandemic levels, as investors prepare for an early interest rate hike by the Federal Reserve to curb growth. high inflation.
The pair points up 0.2% to 115.94, after reaching a five-year high of 116.35 on Tuesday, as the Bank of Japan is considered one of the last central banks to carry out an adjustment of its monetary policy.
The pair is down 0.1% to 1.1300, just above two-week lows, the pair rises to 1.3535, while the, highly risk-sensitive, falls to the 0.7236 level.
The Federal Reserve of the United States will publish those of its December meeting throughout this day, and will be studied in search of clues about the calendar of rate hikes of the central bank.
Fed fund futures suggest that interest rates will start to rise in May, but expectations are raised that the central bank could act sooner, given the strength of the US economic recovery.
The Fed is on track to end its asset purchase program in March, potentially paving the way for a rate hike after doubling the pace of reduction in purchases on December 15.
On Wednesday, the employment data for Friday will also be published, a closely watched prelude to Friday.
The pair fell to 4.0398 after Poland’s central bank raised its benchmark interest rates by 50 basis points on Tuesday, matching December’s rise, in its bid to combat rising inflation.
“We hope that, in the face of a prolonged period of high inflation, the Chairman of the Monetary Policy Committee, Adam Glapiński, will suggest that the Council remains open to further monetary tightening this year, which should support the zloty,” explains Rafal Benecki, analyst by ING (AS :).
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