European markets remain cautious ahead of US inflation data

European markets remain cautious ahead of US inflation data

The euro kept its price against the dollar on Tuesday, but most currency pairs were stuck as traders waited for US inflation data later in the week and more speeches from central bank governors for some clues on the direction of interest rates.

When central banks sought to push back against rising rate increase expectations last week, currency markets have settled back into another spell of low volatility.

The dollar index was little moved as the euro was at US $1.1587, unchanged on the day, and the euro stood at US $1.1587.

Adam Cole, currency analyst at RBC Capital Markets, remains constructive on the dollar. The story based on a purely vanilla nominal rates story based on his prediction that the disagreement of rate expectations with the US would soon shrink, supporting the dollar.

He said that we will get better direction when we get to the US CPI.

The data showed that US consumer prices galloped, and Chinese factory gate prices soared in October.

A slew of central bankers are due to speak later on Tuesday, including European Central Bank President Christine Lagarde at 1 pm GMT 9 pm, Singapore time, and Fed Chair Jerome Powell at 2 pm GMT 10 pm, Singapore time, losewhere the yield rose to a one-month high against the dollar after hitting a four-year low last month. The dollar was down by 0.2 percent on the day due to the decline in the currency last at 112.97 per dollar.

The Bank of England surprise to keep rates on hold last week was last US $1.3558, flat on the day but still some way off a low of US $1.3425 hit on Friday.

The Norwegian crown steadied at US $0.7163 after jumping on Monday, drawing support from traders who were wary of the possibility that the Reserve Bank of New Zealand could raise rates by as much as 50 basis points bps later this month.

ANZ analysts said if the RBNZ is of a mind to increase 50 bps, now, that's the time to increase by 50 bps.

It seems uncirculated with the uncertain global backdrop and cautious tone of other central banks. markets will price in the risk until we know the outcome. The risk-sensitive Australian dollar held off most of its gains on Tuesday to trade at US $0.7422 on Tuesday.

The price of bitcoin in Asia trade rose to a record US $68,564, pulling ether to a record US $4,800. The price was last at $68,038, as it was last at US $68,038.