Markets after Fed minutes along with anticipation of European inflation data
The minutes of the last meeting of the Optional Council of Ministers for December, which were issued yesterday, Wednesday, had the clear trend of the dollar rebounding back to recovery to policymakers when there is a need to reduce interest rates to their current level for some time, which currently helps them to continue and anticipate them in addition to the monetary impact that I look at. The interest rate cuts will occur by the end of this year, with members of the Federal Open Market Committee stressing that they will be followed. More sustainable towards the 2% target.
These data were in the interest of the US dollar in today’s trading against the yen, with an increase of 0.3%, which continues its losses for the third day in a row, in addition to the rise that the dollar achieved yesterday against the euro by 0.2% following these data, but the euro returned to rise today by 0.1% ahead of the data. Consumer prices for December in some European countries, especially Germany, will be released today, which will indicate what the main inflation data will look like throughout Europe, It is scheduled to be released tomorrow, Friday.
Note that the European Central Bank said after the December meeting: that its decisions regarding interest rates will depend on its assessment of inflation expectations in light of the incoming economic and financial data, the dynamics of core inflation, and the strength of monetary policy transmission.
Traders are awaiting the emergence of more evidence about the timing of the European Central Bank reducing interest rates, so far markets are ruling out that the first reduction will be during the next March meeting.
It is worth noting that traders are awaiting important data on the American labor market later today, with the release of private company jobs in the United States during December, and the release of weekly unemployment claims, the jobs report for December will be released, including the number of new jobs added by the US economy in non-agricultural sectors, the unemployment rate, and average hourly wages.
