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© Reuters.
By Peter Nurse
Investing.com – The dollar remains practically unchanged at the beginning of the trading day in Europe this Friday, pending the release of key US inflation data, which could influence the monetary policy of the Reserve Federal for the new year.
At 8:55 AM (CET), the, which tracks the currency against a basket of six other major currencies, is flat at 96.263, on track for its seventh consecutive weekly rise.
The pair rises 0.1% to the level of 113.59, the pair falls 0.1% to 1.1288, while the, very risk-sensitive, advances to the level of 0.7151.
The pair remains stable at 1.3222, even after UK economic data showed lower than expected growth in October as traders hold back on the release of US inflation.
That of the United Kingdom grew only 0.1% compared to September, well below the expected growth of 0.4%. This left the economy 0.5% below its February 2020 level, before the pandemic broke out, and further weakening appears likely as the population faces new restrictions to contain the new one. Covid-19 virus strain.
They will be released at 2:30 p.m. (CET) and economists expect a monthly rise of 0.7%, which translates into an annual rise in prices of 6.8%, the largest year-on-year increase since 1980.
The release of this data is seen as a prelude to next week’s Federal Reserve meeting, and there are high expectations that the central bank will outline a faster tapering of its bond-buying program, pointing to a hike. Earlier interest rates, especially after President Jerome Powell’s recent remarks in Congress.
Powell has stated that it is time to withdraw the term “transitional” when speaking of high inflation in the United States, and has also suggested that it is appropriate to consider finalizing net asset purchases a few months earlier than previously anticipated. .
“The timing of shifting to a more aggressive stance has been interesting, and suggests that the Fed is more concerned about the inflationary consequences of recent developments around the virus than its impact on growth,” say analysts at Nordea (ST 🙂 on a note.
On the other hand, the pair fell 0.2% to the 6.3664 level, with the yuan recovering somewhat after registering its biggest fall in recent months on Thursday, when the People’s Bank of China raised reserve requirements from currencies for the second time since June, in order to curb the recent rally in the currency.
The pair rose 0.2% to 323.70 after Hungary’s central bank decided on Thursday to raise interest rates for the fifth time in less than a month, increasing its deposit rate to one week. by 20 basis points, to 3.3%, in an attempt to curb rising inflation.
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