Investing.com – The US dollar ended higher on Friday, but pared weekly losses after core inflation eased, while sterling pulled back after weak retail sales data showed if spread
At 04:30 ET (09:30 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 0.1% higher at 108.930, but was set for a drop of about 0.5% for the week, which would snap a six-week winning streak.
Dollar set for weekly loss
The dollar has retreated this week after cooler-than-expected data raised the possibility of easier monetary policy this year, even after policymakers at the Federal Reserve indicated that there would be They are cautious in their approach to cutting rates this year.
The Fed Governor said on Thursday that three to four rate cuts are still possible if economic data weakens further.
“The impression at the end of a busy week in macro news is that the hope for a month-on-month slowdown in core inflation is cautious at best,” said analysts at ING, in a note.
“The forward-looking markets are inherently bullish on Trump's inflationary policies from a start that is already well above target.” Therefore, despite a stretched position and short-term overvaluation, the dollar continues to find real triggers for a correction.”
Sterling falls after retail sales decline
In Europe, trading 0.4% lower to 1.2197, after Britain unexpectedly fell in December, down 0.3% in month-on-month terms in December after expanding down 0.1% in November, raising risk fourth economic recession. a quarter
Data released earlier this week showed that the British economy barely returned to growth in November.
This is expected to cut interest rates in February, with two rate cuts in 2025 largely priced into the market.
it fell slightly to 1.0300, before the final eurozone release for December.
“EUR/USD seems to have found a short-term anchor at the 1.0300 handle. That is a rate that incorporates a 2.5-3% risk premium (ie undervaluation), which we suspect will not be materially cut until more clarity emerges about Trump's protectionist policy,” ING said.
Yen is near a one month high
In Asia, it climbed 0.3% to 155.79, near its strongest level in nearly a month.
The yen strengthened significantly this week as several Bank of Japan officials suggested that an interest rate hike is possible when the central bank meets next week.
traded 0.1% lower to 7.3289, after hitting a one-year high this week.
China grew 5.4% in the fourth quarter, more than expected at 5%, as a flurry of recent stimulus measures paid off.
