GLOBAL CURRENCIES: DOLLAR RISES, RECOVERING AFTER YESTERDAY’S FALL AND WITH POUND AND EURO UNDER PRESSURE – Weekly Trends – 21 November 2023

Although the data supports the perception that interest rates from the Federal Reserve (Fed, the American central bank) are at their peak, according to an analysis by High Frequency Economics, the president of the San Francisco district of the monetary authority, Mary Daly, warned, in an interview told the Financial Times, that the BC would lose credibility if it prematurely declared victory in the fight against inflation and then had to increase interest rates again, pointing out that rate cuts should not occur for “a while”.

In the case of the euro, the currency was affected by weaker industrial data from the region, indicating a “victory” against inflation by the European Central Bank (ECB), according to Nordea.

The pound, in turn, was pressured by the slowdown in the United Kingdom’s consumer price index (CPI), which, according to ING, should support a less rigid positioning by the Bank of England (BoE, in English). acronym in English), which tends to harm the exchange rate.

Among emerging markets, the blue dollar rose 4.86%, to 970 Argentine pesos, according to the newspaper Ámbito Financiero after the   Argentine government unfreezes the official exchange rate of the American currency from 350 Argentine pesos to 353.05   Argentine pesos, as operators reported to multiple local press outlets.

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