Dollar Weakens After Minutes Feed Euro Awaits ECB News By Investing.com

© Reuters.

by Peter Nurse

Investing.com – The value of the US Dollar weakened in early trade on Thursday in Europe, following the sell-off in the previous session. After the minutes of the latest meeting of the Federal Reserve of the United States. It is a sign that future interest rate rises will slow down.

By 3:05 AM ET (08:05 GMT), which tracks the greenback against a group of six other currencies, it was down 0.1% to 105.933 after falling 1% overnight.

The dollar was sold after the US Federal Reserve Meeting The last time it was revealed that a “majority” of policy makers expect rate rises to slow down soon.

He raised interest rates by 75 basis points earlier this month for the fourth time in a row in an attempt to curb them. rise But most of the minutes of the meeting repeated the expectations for a rise of 50 basis points in early December.

it rose 0.1% to 1.0407, driven by selling in the dollar. Because traders are waiting for the announcement. the last meeting of the European Central Bank in the last part of the session.

Rising by over 10% in October, but the November figures suggest a regional recession. This creates a dilemma for the ECB’s policy makers.

The head of the Ifo Economic Institute in Germany said on Tuesday: raising interest rates significantly. Although ultimately it depends on how the economic situation develops.

“The ECB still has to work hard,” said Clemens Fuest, “that’s just because of a slow start.”

Interestingly, traders need to look for levels of business confidence in the most important Eurozone economies.

rose 0.2% to 1.2078, up 1.5% from the previous session after preliminary data for beyond expectations Although it still shows a contraction in the economy.

Sterling has recovered strongly since falling to a record low of 1.0327 in September when the Liz Trusts government unveiled plans for massive tax cuts without aid.

Elsewhere, it fell 0.6% to 138.79. The Yen was trading near a three-month high, benefiting from US Treasury yields. That dropped sharply after the release of the Fed meeting minutes.

The risk-sensitive currency was up 0.3% to 0.6748 while it was up 0.1% to 0.6245, rising after raising interest rates by 75 basis points on Wednesday. This was the biggest rate rise ever.

It fell 0.3% to 7.1485 after the Chinese government announced a rescue program for the troubled real estate sector. Although the number of COVID-19 patients continues to increase

It fell 0.2% to 10.4379 ahead of the latest policy setting meeting from Sweden’s central bank, with interest rates expected to rise in an attempt to cut it. that is still higher than expected

Nordea analysts said, “The price seems to have been rising the fastest for some time. Unfortunately, these hopes were dashed by the effects of inflation in October. Rising suddenly and impacting across the board,” Nordea analysts said in a note.

“This figure worries the Riksbank and reinforces the view that the policy rate will increase another 75 basis points to 2.50%.”

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