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© Reuters.
By Peter Nurse
Investing.com – The US dollar stabilizes at the start of trading this Friday in Europe, ahead of the release of key inflation data, while the Japanese yen loses positions after the Bank of Japan’s decision on Friday maintain its ultra-low interest rates and a cautious stance.
At 9:05 AM ET, the , which tracks this currency against a basket of six other major currencies, is broadly unchanged at 110.475, having risen almost 0.8% overnight.
The dollar strengthened on Thursday after the euro, which has the largest weight in the index, fell sharply after the euro raised interest rates by 75 basis points, as expected, although it adopted a more dovish tone to the time to announce your rate forecasts.
However, this has followed the weakening due to rising expectations of a change in course by the IMF in terms of a less aggressive pace of monetary tightening.
With this in mind, traders will focus on this Friday’s release of the Fed’s favorite inflation gauge for clues as to the intentions of the central bank’s policy makers at their meeting this week. coming. Everything indicates that there will be an increase of 0.5% in September, which represents a slight drop compared to 0.6% the previous month.
The pair is up 0.1% to the 146.43 level, after he decided to keep his -0.1% target for short-term interest rates unchanged and his promise to guide the yield of bonuses around 0%.
However, the Japanese central bank revised upwards its inflation forecasts until 2024, indicating further short-term pain for the Japanese economy and further pressure on the currency.
The pair posted a 0.1% rise to the 0.9969 level, approaching parity after posting heavy losses as the European Central Bank hinted that the pace of rate hikes would be less aggressive, removing from his speech the reference to raising them “in the next meetings” that he had included in his September announcement.
The French economy grew 0.2% in the third quarter, according to preliminary official data published this Friday, as expected, although it represents a decrease compared to the quarterly growth of 0.5% registered in the previous quarter.
The pair is down 0.3% to the 1.1526 level, reversing some of this week’s gains of around 2% on optimism that new British Prime Minister Rishi Sunak will take a more aggressive stance. fiscally prudent than the one established by her predecessor, Liz Truss, in her brief tenure.
The pair is down 0.2% to the 0.6433 level, the is up 0.1% to 0.5832, while the is up 0.1% to 7.2367, after China introduced new confinement measures to combat COVID, increasing uncertainty about the extent of its recovery.
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