By Peter Nurse
Investing.com – The US dollar lost positions at the start of trading on Friday in Europe and riskier currencies rose as concerns about a global banking crisis eased.
By 10:25 AM ET (10:25 AM ET), the , which tracks the currency against a basket of six other major currencies, was down 0.4% at 103.715.
The forex market has experienced a relief rally after several large US banks injected $30bn in deposits into First Republic Bank, supporting the regional bank which had been caught in the hangover of the collapse of two more US banks. little ones last week.
This move came after Credit Suisse announced on Thursday that it would borrow up to $54 billion from the Swiss National Bank, thus ensuring that the embattled lender had enough liquidity to meet massive withdrawals following a series of bankruptcies. banking scandals.
The pair is set to rise 0.5% to the 1.0659 level, boosted by Thursday’s decision to go ahead with the 50 basis point rate hike it had previously announced in light of the banking turmoil.
This suggests that ECB policymakers remain confident in the underlying strength of the Eurozone banking sector.
In her regular press conference, the president walked the fine line between acting tough on inflation and acknowledging the need for caution in the face of growing signs of risks to financial stability.
The final data for the euro zone (the ) will be published during the course of this day, and everything indicates that they will show that inflation grew by 0.8% per month in February and 8.5% in the year as a whole.
The pair is up 0.5% to 1.2166, the is up 0.8% to 0.6708, the is up 0.8% to 0.6246, while the is down 0 .3% to 133.32.
The Government of Japan is coordinating closely with the Bank of Japan and other countries’ financial authorities to avoid the consequences of the banking difficulties of several Western banks, Finance Minister Shunichi Suzuki said on Friday.
US economic data will focus on the March University of Michigan index reading to be released this Friday, which will provide indications of how Americans are coping with the current economic difficulties.
That said, attention will now turn to the Federal Reserve’s monetary policy next week, as expectations rise that the US central bank may slow its aggressive rate hike campaign in an attempt to ease stress in the financial sector.
Markets now price at almost 90% the chance that the Fed will raise rates by 25 basis points next week.