Around 9:50 p.m., the greenback returned 0.46% to the single currency, at 1.0555 dollars for one euro.
The dollar retreated slightly against several major currencies on Thursday, on the eve of a series rich in indicators and central bank decisions which should determine the mood of the markets until the end of the year.
Around 8:50 p.m. GMT, the greenback returned 0.46% to the single currency, at 1.0555 dollars for one euro. Earlier, the common currency of 19 European countries had approached its highest level in five months, reached on Monday (1.0595 dollars).
“The + greenback + and its large peers barely moved on Thursday, many preferring to stay behind before key indicators and a trio of central bank meetings,” said Joe Manimbo of Convera in a note.
Currency traders await the publication on Friday of the Producer Price Index (PPI) for November in the United States, then the Consumer Price Index (CPI) for the same month on Tuesday, before the announcement of monetary policy decisions by the American central bank (Fed) on Wednesday, then by the European Central Bank (ECB) and the Bank of England (BoE) on Thursday.
“At this stage, it is a question of consolidating before the next major event,” said Bipan Rai of CIBC Capital Markets.
Market participants aren’t so much interested in the long-awaited next Fed rate hike of half a percentage point, analyst says, but central bankers’ comments and forecasts of rate spike next year.
The market’s preferred scenario calls for a rate above 5%, which means that the Fed could still go through several hikes in 2023, when many central banks have already paved the way for an end to their monetary tightening. .
On the ECB side, currency traders see the key rate at 2.80% by June, against 2% currently, which would remain well below the Fed rate.
As for the BoE, the average forecast is 5.75% next June, against 3% today.