The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany. File photo: REUTERS
Benchmark government bond yields also ticked higher after hitting their lowest levels in months, in the run-up to a raft of data and major central bank meetings next week, including the US Federal Reserve, the European Central Bank and the Bank of England . Comments from ECB officials this week saying eurozone inflation is probably near its peak has bolstered the hope that it will slow its hikes to 50 basis points from 75bps previously at its December 15 meeting. Both the Fed and BoE are expected to do the same at their respective meetings.
De Courcel expects a 50bp rate hike from the ECB next week, but there “is still a risk that they deliver a 75”. “US CPI [consumer price index] is the one data release that seems to really matter for broader dollar direction at the moment and, until we got those central bank meetings and one key monthly US data release, not a great deal is happening,” RBC currency strategist Adam Cole said.