In the meantime, the euro recorded around $ 1.16 on Tuesday, but has not fully recovered the damage it had previously suffered in a market that in this week dominated by the Federal Reserve does not expect the US central bank to appear any milder on Wednesday than in previous, recent times.
The timescale of tapering seems to have already been incorporated into the dollar exchange rate, We estimate that the reduction in Federal Reserve opening will begin in November or December, after which the current programme can be closed by half 2022. This is already included in the rates. However, that does not apply to every indication by the Fed of an increase in interest rates earlier than where the market is now spending on average.
We did not see any changes in price, as indicated by the Purchasing Managers ‘ Indices for industry in the euro area. The indices for the various euro area countries recorded a slowdown in growth, which did not differ much from the provisional figures.
Early on Tuesday morning, the Reserve Bank of Australia was found to have dropped the 10 basis point yield target for the April 2024 commitment, related to improvements in the economy and earlier than expected progress in inflation towards the set targets. According to the bank, compliance with this objective is no longer necessary.
The euro was down 0.1 percent on $ 1.1595 on Tuesday. The European currency recorded 0.1% higher at £ 0.8501. The British pound fell 0.2 percent on Tuesday and stood at $ 1,3640. The Australian dollar fell 0.8 percent to 0.7466 US dollars on Tuesday.
