Dollar price USD
The US dollar index witnessed a slight increase during Thursday’s trading, supported by the rise in US bond yields, especially after the release of very important economic data in the United States, led by; The consumer price index (US inflation) data for last December, and the US unemployment claims data for last week, and these data had a clear impact on the performance of the index during today’s transactions, as it raised speculation about the possibility that the US Federal Reserve will delay the process of starting to reduce interest rates, including… Supporting dollar levels during trading.
How did US inflation data contribute to the rise of the dollar index?
The US dollar index received support that enhanced its rise during Thursday’s trading, as a result of the rise in US bond yields. Where US 10-year bond yields rose by 0.52 and reached the level of 3,931 points, and also; 20-year bond yields rose by 0.73% and settled near the level of 4.296 points, in addition to 30-year US bond yields rising by about 0.88% to reach the level of 4.157 points, and this pushed the dollar index to rise during trading.
At the same time, the positivity of some important American economic data released recently contributed; The US dollar index rose during market transactions, because it strengthened expectations of the possibility that the US Federal Reserve would delay the process of lowering interest rates and keep prices restricted as they are at the current level of 5.50% for some time, and this in turn reflected positively on the dollar’s performance in transactions.
In this context, census data in the United States recently revealed positive US inflation index data during last December, with annual inflation recorded at about 3.4%, higher than market estimates that indicated an acceleration to only 3.2%. At the same time, core inflation recorded Only about 3.9%, which was slightly higher than expectations, which suggested a decline to 3.8%.
In addition, US unemployment claims data was very positive last week, and claims for aid rose by about 202 thousand new applications, which was less than market estimates that indicated an increase in unemployment benefits applications to only 210 thousand applications.
How was the dollar index affected by these developments during trading?
In terms of market trading on Thursday, the dollar index (which measures the performance of the US currency against a basket of six other foreign currencies) witnessed an increase of 0.22% and settled near the level of 102.576 points.
For more:
Why did the US dollar move in a narrow range during today’s trading?
2024-01-11 14:20:36
#inflation #data #affect #dollars #performance #today
