Before next week’s key publication of the inflation statistics, traders were analyzing a number of remarks made by Federal Reserve members, which caused the U.S. dollar to decline in early European trade on Thursday.
At 03:10 ET (08:10 GMT), the, which measures the value of the dollar against a basket of six other currencies, fell by 0.1% to trade at 103.140, reversing Tuesday’s one-month high of 103.96.
However, a few of his coworkers were quick to point out on Wednesday that more interest rate increases were required to completely contain inflation.
In order to combat inflation, the Fed Governor indicated that “we have farther to go,” while the president of the New York Fed noted that the U.S. central bank still likely needs to boost its benchmark interest rate over 5%.
Even if risks are skewed toward another 10bp of tightening being added to the curve, analysts at ING wrote in a note that they believe markets may feel pretty comfortable with the present pricing for a 5.15% peak rate for the time being.
Additionally, traded 0.3% higher at 1.0741, benefiting from the continued prospect of interest rate increases.
Thanks to more government help to lessen the burden from rising energy costs, Germany’s harmonized CPI decreased to 9.2% from 9.6% in January, dropping to the lowest level in five months.
Still, according to ECB policymaker Klaas Knot, stubbornly rising prices might force the central bank of the Eurozone to keep raising interest rates through May.
increased 0.3% to 1.2104, decreased 0.3% to 131.01, and increased 0.7% to 0.6974 for risk-sensitive.
Although a rise of 50 basis points to 3.0% is commonly anticipated, the governor and deputy are both new to their positions, thus it is unclear which course they will take.