The dollar fell slightly on Thursday, after weaker than expected US inflation data for January and a repeat of the dovish policy of the Federal Reserve, but currency market movements were generally calm due to holidays in Asian markets, and currency market movements were small overnight due to holidays in Japan And China, but the dollar fell near its lowest level in two weeks against a basket of currencies, before recovering somewhat with the opening of European markets.
Data on Wednesday showed that the core inflation rate in the United States was zero last month, against market expectations of 0.2%, and Fed Chairman Jerome Powell said that while he anticipated the fundamental effects and pent-up demand when the economy fully opened up to boost inflation, it is likely that. Temporarily, citing three decades of low and stable prices.
Powell also emphasized that the central bank’s new policy framework could absorb annual inflation above 2% for some time before raising interest rates, reinforcing market expectations about weak dollar returns. Strategists wrote that any shift in the policy stance to the hard and less flexible side is not imminent. , Final US interest rates remain flat, the US curve is about to decline further, and real estate will remain extremely negative. To clients.
They said: As the global economy begins its post-winter recovery in the second quarter, this indicates a further upward trend in cyclical currencies, while negative US real rates should also lend a hand to lower-yielding currencies, such as the euro against the dollar, and the euro rose by roughly 0.1% against the dollar to $ 1.2128. The European Commission expected that the eurozone economy will recover less than expected in 2021 did not affect the currency.
The first six weeks of the year have been quite volatile and I think the markets may take a few stocks for the next four or five days while Asian liquidity is limited and the North American holiday continues.
The Australian dollar – seen as a liquid appetite agent for risk – rose 0.3% at 0.7746 against the dollar, surpassing the previous two-week high of 0.7756, and the British pound fell slightly to $ 1.3826, and settled below the three-year high of $ 1.3865. On Wednesday, oil prices retreated, giving back some of the recent gains after the Brent crude price rose for 9 sessions in a row.