2023-11-27 08:40:00
© Archyde.com. A ten pound note and a ten dollar note in a photo from Archyde.com archives.
SINGAPORE (Archyde.com) – The pound rose to its highest level in more than two months once morest the dollar on Monday, although some risk aversion limited the US currency’s losses, with traders awaiting new economic signals next week to determine the course of monetary policy on future interest rates.
The current week is full of events, such as the postponed OPEC+ meeting, the release of data from the Federal Reserve’s preferred inflation index (the US central bank), as well as inflation readings in the region and Australia, the Reserve Bank of New Zealand’s decision on interest rates, and the release of Chinese Purchasing Managers’ Index data.
The pound sterling rose to its highest level in more than two months to $1.2620, extending last week’s gains following data showed that British companies unexpectedly announced a marginal return to growth in November following three months of contraction.
“This indicates the strength of the British economy despite the Bank of England tightening monetary policy very tightly… but we still expect the British economy to weaken and suffer from a short-term recession,” said Carol Kong, a currency expert at the Commonwealth Bank of Australia.
The pound sterling is heading towards achieving gains of regarding 3.8 percent during the month, which is its largest monthly increase in a year.
Regarding other currencies, the dollar fell 0.32 percent to 148.97 yen, while the euro rose 0.2 percent to $1.0952.
It fell 0.12 percent to 103.31 points and is heading towards a monthly loss of more than three percent, recording its worst performance in a year.
Traders returning from the Thanksgiving holiday late last week are still anticipating interest rates peaking and have turned their attention to when the first rate cut might take place, and the US PCE price index this week is likely to provide further evidence of the steps. Following the Federal Reserve.
According to the CME Group’s FeedWatch tool, approximately 23 percent of market participants expect the Federal Reserve to begin easing monetary policy starting next March.
The Australian dollar gave up some of its losses throughout the day and fell in recent transactions by 0.03 percent to $0.6583. It had risen earlier in the session to its highest level in more than three months at $0.6595.
The New Zealand dollar fell 0.13 percent to $0.6074.
It declined following gains over five consecutive sessions, and recorded in the latest trading inside China 7.1550 once morest the dollar.
The yuan outside China fell approximately 0.2 percent to 7.16 once morest the dollar.
(Prepared by Noha Zakaria for the Arabic Bulletin – Edited by Sameh Al-Khatib)
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