Dollar Falls But Still Near 16-Month High; expect consumption data

The Dollar Index (DXY), which compares the greenback to a basket of six currencies, falls this Monday, but remains near a 16-month high reached last week on inflation concerns, as investors expect new data this week. in United States.

The greenback got a boost on Wednesday as data showed U.S. consumer prices rose in October at the fastest annual pace since 1990, calling into question the Federal Reserve’s stance on transitory pressures and fueling wagers on rate hikes.

However, demand for the dollar eased on Friday after data showing consumer confidence fell to its lowest level in a decade, due in part to rising inflation. The Dollar Index is down 0.027% to 95.107 units, not far from last week’s 95.26 high.

“Following consumer confidence data, tomorrow the focus will be firmly on US retail sales to see if the drop in consumer posture is reflected in retail sales,” Fiona Cincotta, who is a senior analyst, told Reuters. of financial markets in City Index.

The Dollar Index, heavily weighted to the euro, has also been favored by a fall in the single currency, although the president of the European Central Bank, Christine Lagarde, continued to dismiss the market’s bets for a more restrictive monetary policy. The euro falls 0.05% to $ 1.1437.