Key Points
SINGAPORE (Reuters) -The dollar stabilised above a more than four-month low on Friday, with a key U.S. inflation gauge due later in the day that could offer clarity on how much room the Federal Reserve has to cut interest rates next year...
The kiwi was last 0.27% lower at $0.6277 after hitting a session high of $0.6298, while the euro peaked at $1.10125 before retreating 0.12% to $1.0996...
Friday brings the U.S. core personal consumption expenditures (PCE) print the Feds preferred measure of underlying inflation and expectations are for the core measure to have risen 3.3% on an annual basis, compared to Octobers 3.5% increase.. The distribution for U.S. inflation is now considered skewed and one-sided, with a high probability of lower levels, said Chris Weston, head of research at Pepperstone...
Hence, the Fed has increased scope to ease policy should the need arise, and while Fed officials are saying their work is not done, and the last push to get to its 2% inflation target is the hardest part, they can front load cuts far more efficiently when core PCE is at 3.5% and falling...
In Asia, the yen last stood at 142.25 per dollar, unfazed by Fridays data that showed Japans core consumer prices rose 2.5% in November from a year earlier, marking the slowest pace of increase in over a year and taking pressure off the Bank of Japan (BOJ) to phase out its massive stimulus...
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