Published on October 22, 2024 In the currency market, the dollar begins the week strongly appreciated, marking 1.0811 as the minimum of yesterday's session, Monday. Several members of the FED were on the wires and indicated a “cautious approach” towards the next FED cuts, causing the market to price only 36 basis points lower for the next two meetings. Furthermore, the polls continue to tip the balance towards the side of the Republican candidate Donald Trump, which is why the “Trump Trades” remain popular: short the Mexican peso and short the yuan against the greenback. The economic calendar for today's session is light on both sides of the Atlantic, highlighting the Richmond manufacturing index for October and the appearance of the president of the ECB, Christine Lagarde, since, in her press conference after last Thursday's meeting, The president did not communicate a specific path for interest rates and stressed that decisions will be based on incoming data. Other members of the ECB will also appear. Valse commented that the consecutive cuts that had occurred are not an indication of future monetary policy and that future decisions will be guided by new signals on the dynamics of inflation. Villeroy, for his part, sees more cuts possible and hopes that inflation will reach 2% at the beginning of next year. Holzman considers the ECB's management of inflation to be good, but warns of possible rebounds in the coming months. Of the rest of the panel, the pound traded flat, but remains in the lower part of the range thanks to its correlation with the stock markets. The Japanese yen crossed above 150 against the dollar while the EUR/JPY pair does so above 163. The Swiss franc was one of the currencies with the best performance yesterday and today started the day at levels of 0.9364 .
The dollar continues its appreciation against the euro, for another week
