The dollar appreciates ahead of important US inflation statistics

The dollar appreciates ahead of important US inflation statistics

The dollar appreciates ahead of important US inflation statistics

The dollar index, which compares the value of the US dollar to a basket of six major currencies, remained almost unchanged at 103.55 as of late.

Before the Bank of England makes its interest rate decision on Thursday, the pound was last seen trading mostly unchanged at $1.27060.

Ahead of the day's important inflation statistics, the US dollar held firm versus other major currencies on Friday as traders assessed the impact of the US economy's stronger-than-expected growth on the Federal Reserve's interest rate policy decisions.

Data released on Thursday indicated that the biggest economy in the world expanded by 3.3% in the fourth quarter, above expectations, and that price pressures are abating, which has led to speculation that the Fed may not quickly lower interest rates.

The Fed's preferred measure of inflation, US personal consumption expenditure data, is scheduled to be issued on Friday at 1330 GMT.

Bets on an April rate drop increased after the European Central Bank (ECB) kept rates on Thursday as anticipated. ECB President Christine Lagarde expressed less anxiety about the inflation outlook in her remarks.

The dollar index, which compares the value of the US dollar to a basket of six major currencies, remained almost unchanged at 103.55 as of late.

MUFG's currency experts said in a report that the US economic statistics released on Thursday presented a mixed picture for monetary policy.

"The strong year-end definitely casts further doubt on the scope for the United States Federal Reserve to begin its easing cycle by March," the note said. March is still feasible, however, mainly because of the GDP report's very positive inflation figures."

After plunging to a six-week low against the dollar after the release of survey data showing lower-than-expected German consumer mood, the euro was down 0.1% at $1.08390 as of late.

Two significant polls released by the European Central Bank (ECB) on Friday suggest that inflation in the eurozone may decline earlier than anticipated this year due to the region's sluggish economic growth, which might lead to a rate reduction.

Before the Bank of England makes its interest rate decision on Thursday, the pound was last seen trading mostly unchanged at $1.27060.

In other news, the dollar increased 0.3% to 148.015 versus the yen.

The Bank of Japan's December meeting minutes, which were made public on Friday, revealed that officials actively discussed how to phase down the stimulus program, indicating their caution over short-term negative interest rates. I was getting ready to go.

At $40,207.00, Bitcoin was up 0.7% between cryptocurrencies.