The Dollar continues to show weakness, and has been eroding by a few fractions every day since mid-February (since 13/02, in fact): the Dollar Index lost a further 0.1% on Monday to 103.83.
It was weak against the Euro (which gained 0.25% to 1.0845), but held up well against the Yen (+0.2% to 150.8), the Swiss Franc (unchanged at 0.8810) and the Pound.
In other words, it is the Euro that is regaining ground this Monday against all currencies in an otherwise very calm market... with no 'stat' to justify this resilience: Bunds and OAT yields have simply rallied more (+8Pts) than T-Bonds (+4Pts).

A certain caution may be called for, particularly in view of the approaching publication of US inflation figures, which could influence the Federal Reserve's next monetary policy decisions.

Thursday will see the release of monthly figures for the PCE consumer price index in the USA, one of the statistics most closely watched by the Fed and expected to rise by 0.4% month-on-month in January.

'Ideally, we would need a PCE core index of around 0.2% per month for several months for the Fed to feel sufficiently comfortable with the inflation dynamic to lower key rates', believes Christopher Dembik, Investment Strategy Advisor at Pictet AM.
US GDP for the fourth quarter will also be monitored on Wednesday, after an initial estimate showed an increase of 3.3% year-on-year, a figure that had beaten most market forecasts.


Copyright (c) 2024 CercleFinance.com. All rights reserved.