American dollar
The US dollar rallied significantly as trading moved on Thursday and recovered from yesterday’s losses on Wednesday as some positive developments boosted demand for the US currency. movements:
Economic data supports the dollar’s recovery
The US dollar managed to rise significantly, benefiting from positive US economic data, as well as economic growth data. The US economy grew by 3.2% during the third quarter of this year and was expected to The US economy would grow just 2.9% during that period, after the previous reading had recorded 2.9% growth during the second quarter of this year.
At the same time, data released today by the US Labor Office revealed that US jobless claims rose less-than-expected this week, as the number of US jobless claims totaled the equivalent of 216,000. new applications, which is lower than market expectations, which indicated that it recorded 221,000 applications The previous reading of this indicator recorded approximately 211,000 applications during the past week, which has been revised to become 214,000 applications, and this positivity has had a important role in supporting the dollar during negotiations.
Urgent – Final reading on US economic growth beats market expectations
Expectations of a rate hike reinforce the strength of the dollar
The US dollar continues to clearly benefit from strengthening expectations for US interest rate hikes in the coming period, as Morgan Stanley Bank’s Jim Caron said that markets are wrong about raising federal interest rates in the next period, and that people expect lower interest rates, but this is not true, adding that we need to listen to what central bankers and their concerns about inflation are saying, and these expectations have a positive impact on dollar movements .
HSBC Bank forecasts for movements of the dollar-yen pair in 2023
Weak US bond yields reduce dollar profits
US dollar gains fell in conjunction with weakness in US bond yields across various maturities, as the 10-year bond yield declined near the 3.673% level, down 0.30%. In addition, the 20-year bond yield decreased by 0.17% to 3.922%. At the same time, the yield on 30-year bonds stabilized and stood at around 3.743%, down by 0.02%. This weakness in bond yields had a negative impact on the movements of the US dollar against other currencies.
US Jobless Claims Data Is Positive And Better Than Expected!
How was the US dollar index affected by these developments?
In light of growing demand for the dollar today with the positive economic data, the dollar index rose significantly above the 104 level as it is currently trading near the 104.36 level, up 0.20 %, and awaits any new developments in the markets that may affect your trading.
