Around 9:50 p.m., the greenback was only up 0.21% against the single currency, at 1.0533 dollars for one euro. It even lost ground against the yen and the pound sterling.
The dollar reacted only modestly on Friday to the publication of a higher than expected US inflation indicator, which does not call into question, from the point of view of traders, US monetary policy.
Around 8:50 p.m. GMT, the greenback was only up 0.21% against the single currency, at 1.0533 dollars for one euro. It even lost ground against the yen and the pound sterling.
The producer price index PPI emerged up 0.3% in November over one month, more than the 0.2% expected by economists.
Over one year, the pace reached 7.4%, more than the 7.2% announced by analysts, but less than the 8.1% recorded in October.
“This surprise on the rise was not marked enough to modify the forecasts” as for the decision that the American central bank (Fed) will announce on Wednesday relating to its key rate, expected to rise by half a point, FHN Financial’s Will Compernolle commented in a note.
As for the consumer sentiment survey, published by the University of Michigan, investors mainly noted that short-term inflation expectations had come out at their lowest in 15 months, at 4.6% per year. , indicating a deceleration in the price increase.
Currency traders were already focused on the CPI consumer price index, due Tuesday, and the Fed’s decision on Wednesday.
For Ivan Asensio, of Silicon Valley Bank (SVB), the market’s lack of reaction is part of a sequence that started after the correction in early November, during which the dollar fell sharply below the euro.
Much of what has emerged from macroeconomic indicators for several weeks “has already been priced in by the market,” he said.
For the analyst, the stabilization observed for several weeks is also the result of the intervention of several central banks on the foreign exchange market, in particular the Bank of Japan.