London (awp/afp) – The dollar lost ground on Friday ahead of an inflation index particularly scrutinized by the Federal Reserve (Fed), which lowered its rates on Wednesday, while the South Korean won is moving close to its lowest in fifteen years, reached the day before.
Around 11:45 a.m., the American currency eased 0.25% against the euro, to 1.0389 dollars, and conceded 0.07% against the pound, to 1.2512 dollars.
Traders remain attentive to the publication later during the session of the PCE index for November, the Fed’s preferred gauge of inflation.
A modest acceleration is expected, to 2.5%, compared to 2.3% in October, according to a consensus of analysts polled by Bloomberg.
“Higher inflation” than expected “could further weigh on the prospects of a fall in market rates,” underline Rabobank analysts.
But according to them, “the Fed has arguably raised the bar for any potential upside surprises” since its meeting on Wednesday, exposing uncertainties around the path of inflation.
In the meantime, the dollar is falling somewhat, after having jumped in the wake of the American central bank’s decision on Wednesday.
If it has unsurprisingly lowered its rates by 0.25 percentage points, bringing them into a range between 4.25% and 4.50%, it is only considering two rate cuts next year from fact of the strength of the American economy.
Also on today’s agenda is an indicator of American consumer confidence in December.
The South Korean currency fell on Friday, by 0.13% against the greenback, to 1,448.50 won per dollar, after falling on Thursday to its lowest since March 2009, at 1,453.77 won.
The won is suffering from the relative strength of the American currency after the cautious guidance of the Fed, and from the political instability in South Korea since President Yoon Suk Yeol’s failed attempt to impose martial law at the beginning of the month.
Suspended last weekend by deputies as part of impeachment proceedings, the deposed president received a new summons from investigators on Friday, after having rejected a previous request this week.
Bitcoin also lost 2.76%, to $94,639.50, “a sign of the feeling of risk aversion” which reigns in the market, underlines Russ Mould, analyst at AJ Bell.
Cours de vendredi Cours de jeudi ------------------------------------ 10H45 GMT 22H00 GMT EUR/USD 1,0389 1,0363 EUR/JPY 162,82 163,15 EUR/CHF 0,9292 0,9313 EUR/GBP 0,8303 0,8228 USD/JPY 156,73 157,44 USD/CHF 0,8945 0,8987 GBP/USD 1,2512 1,2502
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