to slow down the pace of rate hike and shifts its focus towards enlarging financial risks. Back-to-back bigger rate hikes structure by the Federal Reserve has exposed firms to skip their monthly obligations due to higher interest payments. Also, a slowdown in the interest rate hike pace by the Federal Reserve would provide an opportunity to observe the accomplishments led by efforts made yet in cooling down inflation.
After Federal Reserve policymakers signaled that a decline in interest rate hike pace would be optimal, the US Dollar is going through a bumpy ride. The US dollar is expected to decline further to near three-month low of around 105.34. Contrary to the efficient market hypothesis, economists at ANZ Bank have considered the move an exaggerated one as headline inflation at 7.7% is still extremely far from the targeted rate of 2%.
Meanwhile, accounts of the European Central Bank's October policy meeting revealed on Thursday indicated that a few members also voted for 50 basis points interest rate hike. The European Central Bank Governing Council believes that policy tightening could be paused in case there will be signs of a deep and prolonged recession.European Union authorities are planning to levy a ceiling on energy prices to safeguard households from a sheer decline in their real income.
The Relative Strength Index is oscillating in a bullish range of 60.00-80.00, which indicates that the upside momentum is active.
France Dernières Nouvelles, France Actualités
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