© Reuters. The dollar gives up the gains of the last session and records clear stability
Arabictrader.com – During Friday’s trading, the US dollar witnessed clear stability after the statements of US Federal Reserve Governor Jerome Powell supported the upward trajectory of the dollar’s movements in the previous session’s trading. The green currency almost broke the 106-point level, but the dollar quickly began to give up the gains of the last session and stabilized significantly during today’s trading.
In this regard, it is worth saying that the dollar has been exposed to upward and downward pressures at the same time, which contributed to enhancing the stability of its movements during today’s currency market trading. The most prominent of these reasons can be discussed below:
First: upward factors
The US dollar still enjoys strong support from the more hawkish statements of Federal Reserve Governor Jerome Powell, which raised market expectations that the Fed has not yet finished the cycle of monetary tightening and raising interest rates, as Jerome Powell stated that it cannot be said that the bank’s monetary policy has reached a tightening level. Enough, stressing that the US Federal Reserve will not hesitate to raise interest rates if any changes emerge that require tightening monetary policy at an additional pace, and explaining that there is still a lot to achieve the inflation goal, and these statements were reflected positively on the dollar’s movements in today’s trading.
Second: Downward factors
The decline in yields of various terms reinforced the decline during trading, as the benchmark 10-year US Treasury bond yield recorded a decline of about 0.88% to 4.591%, and the 20-year US Treasury bond yield also decreased by approximately 0.85% to reach 4.925%, and likewise, bond yields fell. The US Treasury for 30 years recorded 4.717%, a decrease of 1.06%. This decrease in US bond yields is due to investors’ reluctance to buy the dollar.
It should be noted that the US dollar is awaiting the release of preliminary data for the Consumer Confidence and Inflation Expectations indicators from the University of Michigan shortly, which will likely have strong repercussions on the US dollar’s movements in the coming trading.
How was the dollar’s performance affected by previous developments?
In today’s trading, the dollar index (which measures the performance of the greenback against other currencies) stabilized slightly by about 0.05% to 105.83 points.
As for the weekly performance of the dollar, it can be noted that the US dollar is heading towards achieving noticeable weekly gains, as the gains of the US currency since the first trading of the week until now amounted to about 0.73%.
2023-11-10 15:42:00
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