© Reuters. Illustrative file image of euro banknotes, Hong Kong dollars, United States dollars, Japanese yen, British pounds, and Chinese yuan taken on January 21, 2016. REUTERS / Jason Lee / Illustration / Archive
Por Saikat Chatterjee
LONDON, Nov 17 (Reuters) – The dollar was trading at a four-and-a-half-year high against the yen and 1.12 against the euro on Wednesday, following strong data in the United States and comments from policy makers in the United States. the Federal Reserve will boost expectations of a rate hike in mid-2022.
* Retail sales in the United States rose more than expected in October, according to data released Tuesday, adding to the boost provided this week by data that showed consumer prices in the country rose at the highest rate since 1990.
* “Yesterday’s strong retail sales figure did exactly what it was supposed to do and pushed the dollar into new bullish ground against a number of currencies,” said Jeremy Thomson-Cook, chief economist at international business payments specialist Equals. Mo.
* Money markets are pricing in a high probability of a Fed rate hike in June, followed by another in November. CME data suggests a 50% probability of a 25 basis point rate hike by July 2022.
* The, which measures the currency against six rivals, was up 0.1% to 96,053 units, having previously touched 95,884 for the first time since July last year.
* The greenback rose to 114.975 yen, its highest since March 2017, before falling back and trading at 114.77 yen.
* The euro fell sharply to $ 1.1263 for the first time since July 2020 before trading down 0.2% to $ 1.1319.
* Saint Louis Federal Reserve Chairman James Bullard said Tuesday that the central bank should “take a more restrictive approach” at its next meetings to prepare in case inflation does not start to subside.
* Meanwhile, the British pound rose to a one-week high against the US dollar and a 21-month high against the euro, after data showed UK inflation hit a 10-year high in October, boosting expectations of a rate hike as early as next month.
* As for cryptocurrencies, he was trading just below $ 60,000, after falling below that level on Tuesday for the first time this month. Last Wednesday it reached its all-time high at $ 69,000.
(Reporting by Saikat Chatterjee; Edited in Spanish by Javier Leira)
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