Ekonomické zprávy
23.11.2021

Asian session review: the dollar declined against major currencies

During today's Asian trading, the US dollar fell against major currencies amid profit-taking by investors after a recent rally.

However, the dollar continued to be supported by the news that US President Joe Biden nominated the current head of the Federal Reserve System Jerome Powell for a second term. At the same time, Fed Board Governors Lael Brainard was nominated for the position of his deputy.

"I am fully confident that Powell and Brainard will provide the strong leadership our country needs after the last 20 months they have been 'tested by fire,'" Biden said in a statement. Powell's four-year term as head of the Federal Reserve expires in February 2022.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, Canadian dollar, pound sterling and swedish krona), fell by 0.21%.

Today, the attention of market participants will be drawn to the publication of the eurozone, UK and US PMI indices. As for the eurozone, the index of business activity in the services sector probably fell to 53.5. Meanwhile, the manufacturing PMI is also expected to have declined - to 57.3. While household finances remain stable and prospects for continued expansion are good, the likelihood of some short-term economic softness is one of the factors likely to prompt the European Central Bank to announce plans to reduce overall bond purchases, but very gradually, at its December meeting. The November UK PMI indices will also be closely monitored, although in this case for signs of resilience that may prompt the Bank of England to raise rates at its December meeting.

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