© Archyde.com. FILE PHOTO: US dollar bills are featured in this illustration
Por Karen Brettell
NEW YORK, April 11 (Archyde.com) – The dollar fell on Tuesday as investors awaited U.S. inflation data due on Wednesday for signs that price pressures are easing and what it might mean for markets. Federal Reserve interest rate hikes.
* Consumer price data is expected to show headline inflation rose 0.2% in March, while core inflation rose 0.4%.
* “A lot of traders are focused on these inflation data,” said Edward Moya, a senior analyst at OANDA in New York. “Everyone is trying to get a sense of whether the disinflation process returns and whether this complicates what the Fed does.”
* The Fed is considered likely to raise rates by an additional 25 basis points at its May 2-3 meeting, before a break in June. The markets are also assessing a rate cut for the end of the year in light of an expected recession, although the monetary authorities have emphasized the need to keep rates high to reduce inflation.
* Strong jobs data for March have added to expectations that the US central bank will complete another rate hike. Data on Friday showed that employers added 236,000 jobs, while the unemployment rate fell to 3.5%.
* New York Federal Reserve Chairman John Williams said Tuesday that the prospect of the Federal Reserve raising its benchmark interest rate just one more time and in a 25 basis point increment is a useful starting point. , but that the political path of the central bank will depend on the data that arrives.
* For his part, Chicago Fed President Austan Goolsbee said the US central bank should be cautious regarding raising rates in the face of recent banking tensions, saying a decline in bank lending would help quell the crisis. inflation and would leave less work for monetary policy.
* The euro was down 0.26% at 102.20, and the euro was up 0.41% at $1.0906.
* The note rose once morest the yen, following a rally on Monday when new Bank of Japan Governor Kazuo Ueda indicated he was in no rush to scale back his massive stimulus. The dollar gained at the time of writing this article 0.08% once morest the Japanese currency at 133.73.
* In cryptocurrencies, the broke above the key $30,000 level for the first time in 10 months, improving 1.9% on the session to $30,219.
(Additional reporting by Alun John in London; editing in Spanish by Carlos Serrano and Aida Peláez-Fernández)
