© Reuters. The dollar is jumping and heading to achieve weekly and monthly profits despite the negative data, so why?
Arabictrader.com – The US dollar witnessed a strong rise during Thursday’s trading, after it managed to erase the losses incurred in yesterday’s session against the background of the issuance of negative growth and jobs data, and the green currency is now heading towards weekly and monthly gains so far.
dollar now
It rose – which measures the performance of the US currency against a basket of 6 other major currencies – by 0.36%, to record 103,520 points, and it is on the way so far towards achieving monthly profits of about 1.66%, as well as weekly profits of about 0.20%, after its losses that continued during the past two months.
The most important factors that affected the movements of the dollar
The US dollar incurred significant losses during yesterday’s trading session, after the preliminary reading of gross domestic product growth showed a slowdown that exceeded expectations during the second quarter of 2023, which pushed the dollar towards a strong decline, with increasing expectations that the US Federal Reserve may have reached the end of the rate hike cycle. meeting last July.
At the same time, the dollar faced more downward pressures also on the back of the significant slowdown in non-farm payrolls data issued by the ADP Institute, which showed that the US private sector added fewer jobs than expected, which reflects a further slowdown in the US labor market. Especially after negative job vacancies data and business turnover as well.
But the dollar rose again today, after the hawkish statements of a member of the US Federal Reserve Bank of Chicago, Rafael Bostick, as he confirmed this morning that inflation in the United States is still very high, and indicated that price inflation is slowing down gradually, but any rise Sudden will call for intervention to raise interest again by the central bank.
Bostick also stated that he does not support any tendencies to ease the monetary policy of the US Federal Bank and reduce interest rates in the near term, explaining that the bank still has to be patient and monitor economic data while maintaining the current strict levels.
On the other hand, the dollar also received great support from the euro, which fell sharply today, after data in the euro zone showed negative labor market data in Germany and Italy, as well as a contraction in retail sales that exceeded expectations in Germany, the largest economy in the region.
The dollar and other currencies
In terms of trading, the US dollar declined by 0.49% to $1.0869, and it fell against the US dollar by about 0.34% to $1.2677.
As for its trading against safe-haven currencies, the dollar fell against 0.20% to 145.78 yen, and the Swiss rose by 0.42% to 0.8822 francs.
At the same time, it rose against its US counterpart by about 0.11% to $0.6481, while the New Zealand dollar settled against the US dollar at $0.5958, and the US dollar settled against its Canadian counterpart at $1.3529.
2023-08-31 18:00:00
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