Dollar Down Over Higher-Than-Expected Inflation Data By Investing.com

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© Reuters. By Gina Lee Investing.com – The dollar fell in Asia on Friday morning after the US released unexpectedly high inflation data in May. The dollar, which tracks the greenback against a basket of other currencies, fell 0.11% to 89.980 by 12:14 p.m. ET (4:14 p.m. GMT). The pair rose 0.08% to 109.40, with new analysis suggesting another COVID-19 surge in Japan could come with or without the Olympics. The pair rose 0.04% to 0.7755 as Australia works on a quarantine-free travel corridor with Singapore. Across the Tasman Sea, the pair fell 0.01% to 0.7195. The pair fell 0.10% to 6.3865. The pair was up 0.06% to 1.4182. Investors will watch the UK open on Friday. In the US, data released Thursday said the (CPI) was up 5.0% year over year in May, up 4.7% in the forecasts and 4.2% in the previous session. It saw the sharpest increase in over a dozen years. Core CPI rose 3.8% and 0.7%, respectively, in May, both above investing.com forecasts. However, investors are betting that price pressures will force the Federal Reserve Bank to hike interest rates no sooner than expected, given the hefty contributions from soaring airline tickets and used cars in the short term. “Basically it fit the Fed’s script that we were going to have an outbreak, but it will only be temporary … this report matches it, it doesn’t speak against it. I think the market needed something that spoke against it to keep the US dollar higher, “Westpac currency analyst Imre Speizer told Reuters. Investors are now anticipating next week’s Fed meeting, although investors agree with the Fed conclude that inflationary pressures are temporary and the central bank will leave its current cautious monetary policy unchanged for a while. The central bank is expected to announce a plan to reduce bond purchases, but according to a Reuters survey of economists, it will not start before 2022 “What we’re seeing is a market that believes in the Fed … we’re going to rejuvenate … but it’s going to be such a snail’s pace.” Chris Weston, chief research officer at broker Pepperstone, told Reuters the President of the European Central Bank, Christine Lagarde, on Thursday faster bond purchases. “A sustained rise in market interest rates could aggravate the situation general financing conditions… such tightening would be premature and jeopardize the ongoing economic recovery, ”said Lagarde. Disclaimer: Fusion Media advises you that the information contained on this website is not necessarily real or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading loss you may incur as a result of the use of this data, and Fusion Media or anyone involved in Fusion Media is not responsible for any loss or damage resulting from reliance on the information, including data, prices, Charts and buy / sell signals included on this website. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.

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