London (awp/afp) – The dollar weakened on Wednesday before the publication of several economic indicators in the United States, including inflation in October, which could reinforce the probability of a cut in American rates in December.
Around 11:35 a.m., the American currency lost 0.30% against the euro, to $1.0521, and fell 0.32% against the pound, to $1.2610.
Investors remain cautious before the publication on Wednesday of American growth in the third quarter, weekly applications for unemployment benefits as well as the PCE index in October in the United States, a reference indicator on inflation for the Federal Reserve (Fed ).
The PCE index reached 2.1% year-on-year in September but analysts expect a rise to 2.3% for October, according to MarketWatch and Bloomberg consensuses.
If the inflation data does not turn out to be stronger than expected, “investors will continue to support the hypothesis of a further rate cut of a quarter of a percentage point in December”, further weighing down the dollar , estimates Ipek Ozkardeskaya, analyst at Swissquote.
Disappointing growth figures are also likely to reinforce this probability.
Published Tuesday evening, “the minutes of the Fed meeting” at the beginning of November “suggest that it is following a cautious path in terms of lowering rates,” notes Kathleen Brooks of XTB.
The American central bank should continue this process of gradual easing “if the economy continues to evolve in accordance with its expectations”, notes the analyst.
The American currency, however, is doing well against the Mexican peso and the Canadian dollar, which remain weighed down on Wednesday by Donald Trump’s promises Monday evening to implement, once invested, customs duties of 25% on imports into from Mexico and Canada.
The Mexican peso fell to its lowest level since August 2022 against the dollar on Tuesday, and the Canadian dollar hit its weakest level since April 2020.
Cours de mercredi Cours de mardi 10H35 GMT 22H00 GMT EUR/USD 1,0521 1,0489 EUR/JPY 159,25 160,57 EUR/CHF 0,9282 0,9298 EUR/GBP 0,8343 0,8344 USD/JPY 151,37 153,08 USD/CHF 0,8822 0,8864 GBP/USD 1,2610 1,2569
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