The dollar slips before American inflation

The dollar slips before American inflation
The dollar slips before American inflation

London (awp/afp) – The dollar hesitated on Monday, losing ground in particular against the euro, before American inflation expected to fall slightly this week, and likely to motivate a possible reduction in rates from the Federal Reserve (Fed) .

Around 09:25 GMT (11:25 CET), the greenback slipped against the euro, which gained 0.13% to 1.0785 dollars, and crumbled against the pound, which gained 0.05% to 1 .2529 dollars.

The American currency, however, progressed against the yen and the Swiss franc.

Currency traders curbed their enthusiasm before the publication on of the consumer price index (CPI) for April in the States, as well as inflation for the same month in the euro zone.

“The market also expects a slight drop in the rate of inflation” in the United States, to 3.4% over one year in April compared to 3.5% in March, notes Kathleen Brooks of XTB.

If the index slows more than expected, that could prompt the Fed to accelerate the pace of future rate cuts, the analyst notes.

Lee Harmdan, from MUFG, also notes that the dollar has lost its upward momentum because growth has accelerated more than expected in at a time when, on the contrary, it has flattened in the United States. Hence the dollar’s more pronounced loss of ground against the euro.

On Friday, the United Kingdom officially emerged from recession, as did the Eurozone at the end of April.

The British gross domestic product (GDP) thus increased by 0.6% during the first three months of the year, a more marked rebound than expected by analysts.

Monday lessons Friday lessons

————————————

09:25 GMT 21:00 GMT

EUR/USD 1.0785 1.0771

EUR/JPY 168.08 167.78

EUR/CHF 0.9785 0.9763

EUR/GBP 0.8607 0.8599

USD/JPY 155.86 155.78

USD/CHF 0.9073 0.9064

GBP/USD 1.2529 1.2525

afp/al

-

-

PREV Discovery of 511 billion barrels of oil in Antarctica by Russia, tension intensifies – LINFO.re
NEXT “I grabbed her leg and pulled”: how Fabrilene saved her colleague from a burning car