The dollar falls against the euro, strengthens against the yen

During today’s trading, the US dollar is declining against the euro and rising slightly against the Japanese yen. As of 09:22 Moscow time, the euro was worth $1.1342 compared to $1.1326 at the close of the previous session. The exchange rate of the American currency against the Japanese national amounted to 115.21 yen at the same time against 115.20 yen the day before. The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), is losing 0.17%, the broader WSJ Dollar Index – 0.1%. The pound sterling rose to $1.3596 by 9:22 Moscow time, compared to $1.3577 at the close of the market on Monday. Traders are waiting for key data on US inflation in December, which will be released on Wednesday. Analysts surveyed by Trading Economics on average expect the Consumer Price Index (CPI) to rise 7% year-on-year in December 2021 and 0.4% from November. In November, consumer prices in the United States rose 6.8% year-on-year, the fastest pace since 1982. Also, market participants are waiting for the speech of the head of the US Federal Reserve System (FRS) Jerome Powell in the Senate. Experts at Goldman Sachs (NYSE:GS) expect the Fed to raise rates four times this year and start reducing assets on its balance sheet as early as July. Rapid progress in the recovery of the US labor market and “hawkish” signals that could be seen in the minutes of the Fed’s December meeting suggest that the normalization of monetary policy by the US Central Bank will proceed faster than expected, Goldman analyst Ian Hatzius believes.