Dollar heads for fifth straight week of gains.. Strong rise against all via Investing.com

© Reuters

Investing

The US dollar index is now down 0.18% at 103.287, but that is unchanged from trading at its highest level in two months. The Euro-Dollar pair is currently trading at 1.0875.

The dollar is headed for another week of gains

The dollar saw early gains on Friday as risk sentiment rose after the People’s Bank of China said it would continue to provide more liquidity in an effort to support the country’s economic recovery.

However, on the week, the dollar index is poised to gain another 0.5%, amid growing expectations that the US Federal Reserve will maintain its dovish stance for longer than previously thought.

Data released on Thursday showed a more-than-expected weekly drop in the U.S., signaling a continued slowdown in the labor market and leaving more room for further hikes in interest rates.

It follows the release of the central bank’s July meeting, which showed most policymakers favoring higher rates to curb flat inflation.

“Minutes from the July FOMP meeting … showed that a majority of members continued to see upside risks to the inflation outlook, while leaving the door open for further tightening,” ING analysts said in a note.

Sterling fell after weak retail sales data

The currency pair fell 0.3% to 1.2712 after a sharper-than-expected decline in British currency in July, down 1.2% from June, a year-on-year decline.

Traders are clearly feeling the blow of a rally and 14 consecutive increases in the market, but markets also felt the impact of poor conditions this month.

Heather Profile, deputy director for economic surveys and indicators at the ONS, said: “Sales of both clothing and food have fallen due to the summer slump and the rising cost of living. Store sales and home goods sales also fell. “.

See also  Mercedes has unveiled a new electric car and a unique "van" version

Date of release of inflation data in the Eurozone

The currency pair fell to 1.0868, not far from Thursday’s six-week low of 1.0856, after Sir Christine Lagarde’s hints at a possible pause in interest rate hikes for more than a year in September.

However, the latest release of the index is due later in the session and is expected to show an annualized figure of 5.3%, up from 5.5% in the previous month, indicating expectations for another increase by the end of the year.

Strengthening the Yuan through strong reform

Elsewhere, the currency pair rose 0.1% to 7.2864, supported by yuan-dollar selling and strong neutral reforms, but the outlook for the yuan remains largely gloomy with the possibility of lower interest rates as the Chinese economy slows. Especially the estate sector.

The currency pair fell 0.4% to 145.30, as strong readings for July helped the yen and eventually put pressure on the Bank of Japan to start tightening monetary policy.

  • Nadia Barnett

    "Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

    Related Posts

    • Economy
    • November 2, 2024
    • 72 views
    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    The wealth management landscape is undergoing a dramatic transformation, fueled by the rise of financial technology (fintech), according to fintech entrepreneur Emils Kerimovs. No longer exclusive to the ultra-wealthy, innovative…

    UAE Powering Gaming Boom in the Middle East

    The gaming industry in the Middle East is experiencing a growth spurt, with Saudi Arabia and the United Arab Emirates (UAE) among the countries attracting major investments. However, this digital…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Free Job Posting Sites in the UAE: Perfect for Both Job Seekers and Recruiters

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    Yaroslav Bogdanov: Google in Dubai announced the launch of an artificial intelligence initiative for MENA countries

    How to Choose the Right Mattress: Find the Best Fit for You

    How to Choose the Right Mattress: Find the Best Fit for You

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Emils Kerimovs on Wealthtech Revolution: Investing in the Middle East and Africa

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Forex Brokers Review: Is ITBFX A Safe Broker?

    Best Kitchen Renovation Ideas to Upgrade Your Space

    Best Kitchen Renovation Ideas to Upgrade Your Space