USD fell on Friday against a basket of global currencies to resume its losses, which were temporarily suspended yesterday in the breath taking, again approaching the lowest level in three months, this comes under pressure weak prospects of raising interest rates this year, and for Re-evaluation of those prospects Investors will be looking at key US inflation data later in the day in December.
USD index fell by 0.3% to 94.77 points, where the opening level of trading today at 95.03 points, the highest level at 95.08 points.
The index finished yesterday’s trading up by 0.4%, reversing from a three-month low of 94.62 points recorded earlier in the session.
The index fell more than 1% this week, posting its fourth consecutive weekly loss, the longest losing streak since December 2017, as US interest rates fell this year.
With the weak economic data in United States, a sign that the world’s largest economy is slowing down in the fourth quarter of last year, and after the latest meeting of the Federal Reserve showed that many US monetary policymakers support a stable interest rate this year.
Federal Reserve Chairman Jerome Powell said on Thursday that the US central bank has the ability to be patient about monetary policy despite the steady pace of inflation in the country.
In order to reassess those possibilities, investors are expected to see key US inflation data later in the day. The weakness of these data will further narrow those possibilities and widen the losses of USD against most currencies.
The consumer price index will be released by 13:30 GMT, forecasting a 2.2% year-on-year rise in December in the same reading, and a 0.1% monthly reading expected from a 0.0% increase.