The impact of a group of Chinese economic data, including growth rates in the third quarter, on the markets was characterized by subdued, but subsequent comments from Central Bank of China About more details of fiscal stimulus measures in raising Chinese assets on a large scale.
Data showed on Thursday that consumer spending in the United States exceeded expectations last month, which reinforced investor speculation that US interest rates may not need to be reduced at the rapid pace that many had imagined just two weeks ago.
The European Central Bank reduced Interest rates In the euro zone, a quarter of a percentage point rose yesterday, Thursday, in line with expectations, indicating a deterioration in economic growth across the region.
The euro, which is hovering around its lowest levels since early August, is heading to record the largest decline in three weeks against the dollar since 2022 by about three percent, with traders currently expecting the European Central Bank to take successive decisions to reduce at its upcoming meetings.
The dollar received additional support from the possibility of Trump winning the November elections, amid speculation that his proposed customs and tax policies will keep US interest rates high.
“The European Central Bank cut interest rates and did not give any hints about a cut in December,” said Fiona Cincotta, a market analyst at City Index. “But given the level of inflation and the deteriorating economic outlook, they are focusing on trying to support the economy further,” according to what was reported by Reuters.
She added, “I see the possibility of the euro falling in the future towards the $1.08 level.”
In the latest trading on Friday, the euro rose 0.1 percent to $1.08378, after falling in 14 out of the last 16 sessions.
Four informed sources told Reuters that the European Central Bank is likely to cut interest rates again in December unless economic data supports otherwise.
At the same time, markets were disappointed by the lack of more details provided by the Chinese authorities regarding plans to revive the economy, and the yuan is on track to record the largest weekly decline in more than 13 months against the dollar.
In the latest foreign transactions, the yuan reached $7.1166, which pushed the US currency down 0.27 percent during the day. The Australian dollar increased 0.26 percent to $0.6713
The dollar fell 0.2 percent during the day against the yen to reach 149.925, after breaching the 150 level this week for the first time since early August.
As for the pound sterling, it was among the strongest performing currencies against the dollar, rising 0.2 percent to $1.3037 after British data showed that retail sales grew more than expected in September, which strengthened investors’ confidence somewhat about the strength of the British economy.
Bitcoin received a boost from expectations of Trump winning the presidency, as it is believed that his administration will adopt a more flexible approach regarding regulating cryptocurrencies. Bitcoin reached $67,915 in recent transactions, an increase of more than 10 percent since October 10.
