As markets prepared for a barrage of Federal Reserve speakers this week and U.S. inflation data, the dollar began Monday in a cautious manner, while the yuan was still recovering from Beijing’s most recent lacklustre stimulus program.
Data released over the weekend revealed that producer price deflation intensified in October while consumer prices increased at the weakest rate in four months, underscoring China’s precarious situation.
The dollar index gained 0.6% last week, mostly against the euro, and was somewhat stronger at 105.00.
After dropping 1% to as low as $1.0683 last week, the single currency was locked at $1.0711. The current range of support is between $1.0667 and $1.0601.
Friday’s retail sales and industrial output reports should demonstrate whether Beijing’s multiple stimulus initiatives are indeed impacting demand.
The Australian and New Zealand dollars fell on Friday due to disappointment with the most recent package, as both nations are significant exporters to China.
After rising 0.7% on Friday, the dollar was trading at 7.1970 yuan and is expected to try the 7.2000 barrier once more.
Overall, there were just slight movements, and although stocks and futures are open, the U.S. bond markets are on holiday. The risk of Japanese intervention pulled the dollar off last week’s peak of 154.70, but it was up 0.1% against the yen at 152.90.
Political unpredictability persisted, as German Chancellor Olaf Scholz stated that he would consider calling a vote of confidence before Christmas.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.