The dollar remained steady on Thursday as market participants awaited the release of U.S. inflation figures, while the euro slipped slightly amid expectations of a potential rate cut by the European Central Bank (ECB) next week.
The American currency appreciated by 0.09% against the euro, trading at 1.0929 dollars per euro, and showed minimal movement against the British pound, priced at 1.3070 dollars per pound.
For some time, the market had anticipated a 0.5 percentage point reduction by the Federal Reserve (Fed) during its upcoming meeting on November 6-7. However, a stronger-than-expected employment report released last week has altered this outlook.
Since that report, analysts have noted that “the possibility of no rate cut” in November is gradually gaining traction. This probability currently stands at 15% ahead of the U.S. inflation data release and may shift further if inflation does not slow as expected, according to analysts.
Indeed, the market is closely monitoring the Consumer Price Index (CPI) for September in the United States, which is set to be announced later today, alongside several speeches from Fed officials.
Economists surveyed by Bloomberg predict that the annualized consumer price increase in the country will decline to 2.3% in September, down from 2.5% year-on-year in August.
The euro is also experiencing weakness against major currencies, slipping 0.08% against the pound, which is currently trading at 83.61 pence per euro.
