The US Dollar was catching its breath yesterday as traders were still digesting the more positive than expected US jobs report and awaiting inflation data to be released tomorrow. At the end of the followingnoon, the Dollar Index, which compares the greenback to a basket of other currencies, yielded 0.41% to 106.19 points. On Friday, the currency was boosted by better-than-expected data on the U.S. labor market, which returned to pre-pandemic levels in July. “On the one hand, we had learned a few days ago that the American GDP had been contracting since the beginning of the year, on the other, the United States is creating jobs at full speed”, underlines Ulrich Leuchtmann, analyst at Commerzbank. “The risk that the Fed (Federal Reserve) will raise its rates quickly in the coming months remains high”, which benefits the dollar, “but the possibility that this weighs on the American economy in the longer term is also reinforced”, explains he.
A complex situation that pushes market players to wait for inflation data tomorrow. “If US inflation starts to slow, the Fed might opt for smaller rate hikes,” comments Ipek Ozkardeskaya, analyst at SwissQuote. The euro’s gains were more moderate once morest the US currency (+0.24% to $1.0207).
“Concerns over possible gas shortages in Europe this winter, along with fears of rationing for the industry, are making investors nervous” on the single currency, RaboBank analysts remind. “The markets were, however, somewhat reassured by the assurance of Fratelli d’Italia that they would maintain economic reforms if they won the Italian election,” they added. The nationalist and eurosceptic formation has been leading the polls for the September 25 legislative elections for several weeks.
The US Dollar was catching its breath yesterday as traders were still digesting the more positive than expected US jobs report and awaiting inflation data to be released tomorrow. At the end of the followingnoon, the Dollar Index, which compares the greenback to a basket of other currencies, yielded 0.41% to 106.19 points. On Friday, the currency was boosted by…
