By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Markets > Forex > Dollar retreats after CPI release; euro gains ahead of ECB decision
Forex

Dollar retreats after CPI release; euro gains ahead of ECB decision

News Room
Last updated: 2023/09/14 at 3:39 AM
By News Room
Share
4 Min Read
SHARE

Investing.com – The U.S. dollar edged lower in early European trade Thursday after U.S. inflation release, while the euro climbed from recent lows ahead of the European Central Bank’s eagerly-awaited rate-setting meeting. 

Contents
ECB rate decision looms largeNovember Fed meeting rises in importanceYuan awaits key economic data

At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower to 104.269, on course for a negative week.

ECB rate decision looms large

rose 0.2% to 1.0745, continuing its climb from last week’s three-month low of 1.0686 as traders positioned for the ECB’s latest interest rate decision, due later in the session.

The was widely expected to pause its rate-hiking cycle after President hinted at such a move in late July.

However, expectations have since moved more towards a tenth consecutive interest rate hike after a Reuters report, released earlier this week, indicated that the ECB policymakers expect inflation in the 20-nation eurozone to remain above 3% next year. This is well above its 2% medium term target.

”Our baseline scenario sees a rate hike, which would translate into a stronger euro in the aftermath of the announcement,” said analysts at ING, in a note.

“But with EUR/USD having been on a steady bearish path since the 1.12 July peak, the real question is whether a hike would invert the trend. The short answer is probably not.”

November Fed meeting rises in importance

The dollar has slipped back a touch following Wednesday’s release of the latest U.S. inflation data, which showed U.S. increased by the most in 14 months in August as the cost of gasoline rose, but the annual rise in was the smallest in nearly two years.

These numbers failed to alter views for a pause next week, and attention is now turning to the November meeting as being crucial in determining market sentiment.

Core inflation rates are showing signs of stabilizing at lower levels, but the run up in crude prices could push the headline inflation rate higher still.

There’s more U.S. inflation data to digest later Thursday, in the form of August , while are expected to show a slowdown in growth rates as consumers rein in spending.

Yuan awaits key economic data

Elsewhere, rose 0.1% to 7.2744, but the yuan remained well above a recent 10-month low as the People’s Bank of China buoyed the currency with a series of strong daily midpoint fixes.

Chinese and data are due on Friday, and are expected to offer more cues on a recovery in Asia’s largest economy.

fell 0.2% to 147.10, with the yen hovering just above a 10-month low as markets awaited more signals from the Bank of Japan on when it plans to pivot away from a negative rate regime. 

rose 0.1% to 1.2494, ahead of next week’s meeting, while rose 0.3% to 0.6440 after data showed the economy added a consensus-beating 64,900 jobs in August.

 

Read the full article here

News Room September 14, 2023 September 14, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
How Tesla lost some of its biggest fans

Watch full video on YouTube

Is private equity becoming a money trap?

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Iran has increased enriched uranium by 50%, says UN watchdog

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Israel blocks Arab foreign ministers from meeting in West Bank

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

South Africa faces backlash over plan to change law for Musk’s Starlink

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Forex

Thailand’s weakening baht not all bad for economy – PM

By News Room
Forex

Sterling hits multi-month low, Fed holds rates steady amid inflation concerns

By News Room
Forex

Dollar index on verge of forming bullish ‘golden cross’ – BofA

By News Room
Forex

Japan warns against post-Fed yen slide

By News Room
Forex

Asian currencies stumble amid rising U.S. dollar and hawkish Federal Reserve stance

By News Room
Forex

Asian currencies under pressure due to Federal Reserve’s stance, says HSBC

By News Room
Forex

Dollar rallies, yen under pressure ahead of BOJ rate decision

By News Room
Forex

Gambia’s dalasi remains Africa’s strongest currency amid tourism and remittance inflows

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?