The U.S. dollar edged higher in early European trade Thursday, but remained near a three-month low ahead of a key reading of U.S. inflation later in the session.<\/p>\n
At 04:50 ET (09:50 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% higher to 103.120, just above the 102.46 level it hit on Wednesday, its lowest since Aug. 10.<\/p>\n
The dollar has received something of a boost after data showed the\u00a0U.S. economy<\/a><\/span>\u00a0grew faster in the third quarter than initially reported.<\/p>\n However, it\u2019s still down 3.2% in November, its worst month in a year, on growing expectations the Fed will cut interest rates in the first half of 2024.<\/p>\n These expectations were boosted earlier this week after Fed Governor\u00a0Christopher Waller<\/a><\/span>, widely seen as a hawkish voice at the central bank, flagged the possibility of a rate cut in the months ahead, if the recent decline in inflation continues.<\/p>\n With this in mind, traders await the release of the Fed\u2019s preferred inflation gauge, the personal consumption expenditures price index, later Thursday.<\/p>\n The\u00a0core reading<\/a><\/span>, which strips out food and fuel costs and is considered a better gauge of underlying inflation, is expected to have risen 3.5% on a year-over-year basis, a drop from 3.7% the prior month, and the lowest since mid-2021.<\/p>\n In Europe,\u00a0EUR\/USD<\/a><\/span>\u00a0fell 0.4% to 1.0924, with the euro retreating ahead of the release of the latest eurozone inflation data.<\/p>\n The November\u00a0eurozone CPI<\/a><\/span>\u00a0release is expected to fall to 2.7% on an annual basis, from 2.9% the prior month. However, data released on Wednesday showed that German inflation eased to 2.3% in November, significantly more than the 2.6% expected.<\/p>\n The euro was also hit by the news that the\u00a0French economy<\/a><\/span>\u00a0contracted by 0.1% in the third quarter of the year, weaker than the 0.1% growth expected.<\/p>\n GBP\/USD<\/a><\/span>\u00a0fell 0.2% to 1.2671, retreating further from the three-month top of 1.2733 seen earlier in the week.<\/p>\n In Asia,\u00a0USD\/JPY<\/a><\/span>\u00a0traded marginally lower to 147.18, with the yen receiving little support from data that showed\u00a0retail sales<\/a><\/span>\u00a0grew less than expected in October, while\u00a0industrial production<\/a><\/span>\u00a0remained muted.<\/p>\n Still, the yen marked a sharp recovery from near 33-year lows in November, and was set to rise 3% in the month, its best monthly gain since November 2022, when the government had intervened in currency markets.<\/p>\n USD\/CNY<\/a><\/span>\u00a0edged lower to 7.1295, after a stronger midpoint fix from the People\u2019s Bank of China. But gains were limited after\u00a0purchasing managers index<\/a><\/span>\u00a0data showed a sustained decline in Chinese manufacturing activity.<\/p>\n Source: https:\/\/www.investing.com\/news\/forex-news\/dollar-recovers-from-threemonth-lows-pce-data-looms-large-3246563<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar edged higher in early European trade Thursday, but remained near a three-month low ahead of a key reading of U.S. inflation later in the session. At 04:50 ET (09:50 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.4% higher to 103.120, just above the […]<\/p>\n","protected":false},"author":1,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpautop"],"translation":{"provider":"WPGlobus","version":"2.10.10","language":"fr","enabled_languages":["en","nl","es","sv","fr"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"nl":{"title":false,"content":false,"excerpt":false},"es":{"title":false,"content":false,"excerpt":false},"sv":{"title":false,"content":false,"excerpt":false},"fr":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\nEuro weakens ahead of eurozone inflation<\/strong><\/h3>\n
Yen continues sharp recovery<\/strong><\/h3>\n