© Reuters.
Investing.com – The euro was back above par against par for the first time in a month on Wednesday after poor US economic data reinforced speculation that the Federal Reserve will slow interest rate hikes, sending the dollar to the downside.
The single euro rose to $ 1.0048, the highest since September 20, and the latest 0.5% rise to $ 1.100215.
More landing
It rose 0.9% to $ 1.1574, the highest level since Sept. 14, consolidating Tuesday’s 1.6% gain after market optimism for Prishi Sunak, who became Britain’s prime minister.
With the Euro rising, the Pound rebounded and the Dollar also fell against the Japanese Yen, dropping 0.6% to 147.0, away from 150 levels, the lowest in 32 years.
The Canadian dollar rose to a high of 1.3512 against the US dollar, its strongest level in three weeks, ahead of the Bank of Canada’s monetary policy meeting later in the day.
The US dollar fell during these trading times today, Wednesday, by around 0.5% against the Norwegian and Swedish krona.
The dollar fell more than 1.5% offshore, while the inland closed the local trading session at 7.1825 per dollar, its strongest close since 12 October.
The Australian dollar was up 1.24% to $ 0.64735 as higher-than-expected inflation data weighed on the Reserve Bank before deciding on an interest rate next week.
Possible slowdown
“It’s a continuation of the (dollar) sell-off we’ve seen since the end of last week,” said Lee Hardman, a currency analyst at MUFG. “Markets are expecting a possible slowdown in the pace of the Fed’s hike.”
“We don’t think that will happen at the next meeting in November, but certainly by December there is a greater chance that they can bring the pace to 50 basis points instead of the 75 basis points we have seen recently,” added the MUFG currency analyst.
Loss of Wall Street
Federal Reserve officials are starting to check that they want to slow the pace of the hikes soon, according to a Wall Street Journal report on Friday that brought prices back to the market.
It came to you in conjunction with the leaks in the press according to a Wall Street Journal report last weekend about the Fed official’s consideration to allay market fears about the impending hike.
This comes in conjunction with warnings from international banks and banking experts about the need for the Federal Reserve to halt the unprecedented wave of tightening that is plunging the American and global economy into sharp recession.
