©Archyde.com. Photographic illustration with 100 dollar bills in Tokyo, Japan. August 2, 2011. REUTERS/Yuriko Nakao
By Gertrude Chavez-Dreyfuss
NEW YORK, Oct 10 (Archyde.com) – The US dollar rose for the fourth straight session on Monday as investors eye this week’s inflation data, which is expected to show that price pressures remain in the economy. largest economy in the world, which would prolong the aggressive monetary policy of the Federal Reserve until next year.
* The British pound, for its part, fell for the fourth consecutive session, despite the fact that the Bank of England extended its support to financial markets.
* US data released on Thursday is expected to show headline inflation at 8.1% y/y in September, down from 8.3% in August, but core inflation rising to 6.5% from 6.3 % previous.
* Chicago Fed President Charles Evans said Monday that inflation is much more persistent than the US central bank thought. However, he noted that the Fed may still be able to cut it without a sharp rise in unemployment and without pushing the economy into a recession.
* The US rose 0.3% to 113.14, after hitting lows around 110 last week and getting back close to last month’s 20-year high of 114.78. The euro was down 0.4% at $0.9705.
* US data on Friday showed unemployment unexpectedly fell and the US economy added more jobs than expected in September, sending bond yields higher as traders raised bets that the Fed Federal will raise interest rates by 75 basis points in November, for the fourth consecutive meeting.
* “The continuing strength of the labor market, Friday’s nonfarm payroll report, gave the Fed carte blanche to continue raising rates,” said Karl Schamotta, chief market strategist, at Corpay in Toronto.
* He added that the minutes of the latest Fed meeting, due to be released on Wednesday, “will likely show that policymakers remain willing to inflict severe economic pain on the US and global economy as they try to reduce inflation.”
* Geopolitical tension and rising prices also sparked renewed nervousness about growth, pushing investors back into the dollar.
* Russia bombarded kyiv and other Ukrainian cities with missiles in response to an explosion that hit its only bridge to Crimea.
(Edited in Spanish by Javier López de Lérida)