© Reuters. The US dollar is about to achieve its fifth consecutive weekly gain
FXNEWSTODAY – The US dollar rose in the European market on Friday against a basket of global currencies, to resume yesterday’s paused gains, on its way to touching a two-month high again, thanks to the world’s largest currency buying activity as the best available investment.
The US currency is about to achieve its fifth weekly gain in a row, within the longest series of weekly gains this year, after strong economic data in the United States and details of the recent Federal Reserve meeting boosted the possibilities of raising prices by about 25 basis points during the remainder of this year.
The American
The dollar index rose by 0.15% to the level of 103.55 points, from the opening level of today’s trading at 103.40 points, and recorded the lowest level at 103.22 points.
The index ended yesterday’s trading down by less than 0.1%, in the first loss in the last six days, after earlier recording the highest level in two months at 103.60 points.
weekly dealings
Throughout the week’s trading, which officially ends today, the US dollar index is up 0.7% so far, about to achieve its fifth consecutive weekly gain, within the longest series of weekly gains since April 2022.
Currency purchases increased as the best investment available, in light of the succession of positive data in the United States, which shows the extent of the flexibility enjoyed by the largest economy in the world, in addition to strict federal comments.
Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that while the US central bank has made some progress in its battle against inflation, interest rates may still need to rise to finish the job.
American economy
Data released this week in Washington showed a higher-than-expected rise in July, with factory production rising, weekly jobless claims falling, and a surprising growth in manufacturing activity in Philadelphia.
These data reinforced the vision about the resilience enjoyed by the US economy, which contributes to making the Federal Reserve’s battle with high inflation easier, as it allows it to further tighten monetary and raise interest rates.
Federal Reserve Minutes
The minutes of the Federal Reserve’s meeting held on July 25-26 last made it clear that the increase it approved came as part of its continuous efforts to tame inflation in the country, and despite the slowdown in inflation, it is still far from the target at 2%, at a time when we are witnessing growth. moderate to the US economy.
The minutes issued on Wednesday indicated that inflation risks require vigilance, and may need more monetary tightening, in the event that members see significant upward risks to inflation in the country.
The minutes indicated that the Fed officials remained, at their last meeting, concerned to a large extent that inflation would not recede, and suggested continuing to raise interest rates.
American interest
Following the above minutes, futures pricing for the possibility of raising US interest rates increased by 25 basis points during the September 20 meeting, from 10% to 14%, and futures pricing for the possibility of keeping interest rates unchanged from 90% to 86%.
Futures pricing on the odds of a 25 basis point hike in US interest rates rose at the November 1 meeting from 34% to 40%, and the forward pricing for the odds of keeping interest rates unchanged from 66% to 60%.
2023-08-18 13:18:00
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