The dollar rises, inflation in sight, bitcoin stabilizes

Around 8:20 p.m., the greenback rose 0.29% against the euro, at 1.1282 dollars.

The US dollar rose against the euro on Monday in a market already focused on inflation in the US, expected on Friday, and the Fed’s meeting next week, while bitcoin cryptocurrency stabilized after Saturday’s plunge.

Around 7:20 p.m. GMT, the dollar gained 0.29% against the euro, at 1.1282 dollars.

After having fallen sharply against the euro in the last sessions of November, the greenback is gradually approaching its high of the year reached on November 24 at 1.1186 dollars.

“The US dollar starts the week strong as we remain focused on the COVID variant and an imminent Federal Reserve meeting,” scheduled for December 14 and 15, said Joe Manimbo of Western Union.

“While it is still not known whether Omicron will have an impact on the global economy, markets feel reassured by the first information which suggests that its symptoms are mild,” he added.

The major event risk this week is inflation in the United States, the latest data of which will be released on Friday. According to analysts, it should jump to 6.7% for November from 6.2% in October.

Then, eyes are on the decision close to the Fed which could “reduce its monetary support more quickly and pave the way for a rate hike sooner”, explained the analyst. These data were favorable to the rise of the greenback.

“The spread of the new Omicron variant of COVID-19 and the rather determined comments from the Fed have increased the volatility of the dollar,” commented Lee Hardman, analyst at MUFG.

Currency traders are indeed divided: will the possible impact on the economy of a new wave of Covid-19 push the US Federal Reserve (Fed) to delay before tightening its monetary policy, or will it it act to counter inflation?

On the cryptocurrency side, bitcoin, whose price collapsed by more than 20% during the day on Saturday to sink to a low since the end of September at $ 42,296 before recovering, was slowly approaching its symbolic threshold of 50,000 dollars.

“The drop was triggered by a movement in sales of risky assets that started on Friday and triggered by concerns about the Omicron variant, and amplified in the case of bitcoin by volumes decreased by the weekend,” explained Victoria Scholar, analyst at Interactive investor.

Compared to Sunday evening, the price of bitcoin rose 0.28% to $ 49,367.

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