the FED reinvigorates the $, but declines by 0.5% weekly

The Dollar ended its slide that began on Tuesday thanks to statements by members of the FED qualifying inflation as higher, more durable and more worrying than expected.
Which seems to conform to the tenor of the FED’s mid-December minutes: that was a month ago and the inflation figures published since then continue to beat 30-year records.

A tightening of monetary conditions was expected, the pace could be more sustained than expected.
T-Bonds reflect this with an increase of +6.5 basis points to 1.775%… but this is not a decisive advantage compared to Bonds and OATs with +5 basis points.

The greenback rebounded by +0.3% towards 1.145/E, +0.2% against the pound and +0.35% against the Swiss franc.
It still lost -0.5% over the week if we refer to the Dollar Index which ended at 95.2E.

With regard to the most striking figures for this Friday, the ‘UMICH’ household confidence index is a disappointment: the morale of American households is at half mast with a drop from 70.6% to 68.8%.

The monthly survey by the University of Michigan provides other interesting indications: in detail, the sub-index relating to the assessment of current conditions fell from 74.2% in December to 73.2% in January. Furthermore, the consumer expectations index fell to 65.9%, against 68.3% the previous month.

Retail sales fell -1.9% in December in the United States (against +0.2% expected), after a minimal increase of 0.2% in November, the month of Thanksgiving and ‘Black Friday’ .
Over the whole of the 2021 financial year, retail sales nevertheless rose by 19.3%, consumption in the 1st half and then in July/August having been boosted by federal checks.

The euro zone recorded a deficit of -1.5 MdsE in November 2021 according to Eurostat, compared to a surplus of 25 MdsE in November 2020.

According to Eurostat, housing prices jumped by 8.8% during the third quarter of 2021 in the Eurozone, and by 9.2% in the EU compared to the same quarter of the previous year indicates Eurostat.

This is the largest annual increase since 2005 specifies Eurostat. In the second quarter of 2021, house prices had increased by 6.8% and 7.4% respectively.
Compared to the second quarter of 2021, house prices in the third quarter of 2021 increased by 3.3% in the euro area and by 3.1% in the EU.

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