The dollar is witnessing its best days this month, but it is heading for its worst monthly losses in a year

The US dollar witnessed a significant rise during Thursday’s trading, and witnessed the best daily performance since the beginning of November until now, amid the release of a large group of supportive data, and purchases that usually occur at the end of the month, but this may not be enough to prevent the dollar from incurring monthly and weekly losses. .

Dollar now

In terms of trading, the dollar index – which measures the performance of the US currency against 6 other major currencies – rose by 0.52% to record 103.58 points.

The most prominent factors that affected the dollar’s ​​movements

The dollar rose today despite increasing speculation that the US Federal Reserve has reached the peak of interest rates in the current tightening cycle, as the dollar received significant support from the wave of buying operations resulting from profit-taking with the settlement of positions in the last sessions of the month, which witnessed widespread selling operations. Range on the greenback.

Both the euro and the pound sterling witnessed significant selling operations against the dollar today after lower-than-expected inflation data issued in Europe today and yesterday, which helped the dollar achieve some profits. The dollar also benefited from the decline of the Japanese yen as members of the Bank of Japan continued to stress the need to… Maintaining a facilitative policy.

The dollar also received some support from the preliminary reading of growth data issued in the United States yesterday, which showed growth that exceeded expectations, with the GDP growth rate recording 5.2% during the third quarter of the year, compared to the previous quarter, which had witnessed growth of 4.9%. Expectations had expected the economy to grow by only 5%.

At the same time, today’s data showed the continued flexibility of the US economy, as the Chicago Purchasing Managers’ Index jumped from 44.0 points in October to 55.8 points in November, emerging from contraction and exceeding the minimum growth limit of 50.0 points, exceeding market estimates that expected it to record only 45.4 points. This helped the dollar maintain its gains today.

The data showed that the pending home sales index for October contracted by 1.5%, which was better than expectations that indicated a contraction of about 1.9%, but worse than the September reading, which showed a growth of 1%. US unemployment claims for last week also witnessed a slight increase. But it came in lower than expectations, recording 218,000 orders.

As for the Federal Reserve’s preferred inflation index, which the markets were eagerly awaiting, the personal consumption expenditures index fell from 3.4% to 3%, and the index decreased in its basic value from 3.7% to 3.5%, thus adding to the global wave of decline in inflation in the rest of the major economies. , the latest of which was the Eurozone today.

The dollar index is currently heading to achieve its best daily gains in about a full month, since last August 31, but despite this, it is heading to close this month’s trading with its worst monthly losses since November of last year, by about 2.75%.

As for its trading against other currencies, the euro/dollar pair declined by about 0.60% to $1.0904, the sterling/dollar pair also decreased by about 0.45% to $1.2636, while the dollar/yen pair rose by 0.48% to $147.91.