Inflation data is the ideal lifeline for the US dollar index, how is that?

© Archyde.com. Inflation data is the ideal lifeline for the US dollar index, how is that?

Arabictrader.com – The US dollar recorded clear increases in the course of trading today, Tuesday, benefiting from the release of the green currency, which served as a lifeline for the green currency, especially as it reinforced optimism regarding continuing with full force during the current September meeting. The following are the main influences on the US dollar’s ​​movements today:

Inflation data is the best lifeline for the dollar index

The US dollar benefited strongly immediately following the release of US inflation data, which reinforced optimism regarding the continued strong US interest rate hike during the current September meeting, in light of the recent inflation rises. US consumer prices on a monthly basis by 0.1%, while it was expected to decrease by 0.1%, which is higher than the previous reading, which settled at zero levels last July.

At the same time, the data showed that US core inflation rose on a monthly basis by 0.6%, above market expectations of a growth of 0.3%. While the previous reading recorded a growth of 0.3% during last July. On an annual basis, data showed that US inflation grew by 8.3% at the end of last July, higher than market expectations of a growth of 8.1% only. But it is lower than the previous reading, which recorded a growth of 8.5% during last July.

The rise in the US bond yield positively affects the dollar’s movements

The US dollar rose clearly during Tuesday’s trading, coinciding with the rise in the US bond yield of all ages, as the US 10-year bond yield rose by 1.65% to settle near the level of 3.418%. The US 20-year bond yield also rose near the level of 3.7840%, declining to 0.80%.

At the same time, the 30-year bond yield settled near 3.541%, rising by regarding 0.80%, and this rise in the US bond yield had a strong and positive impact on the US dollar index in trading.

How was the American affected by these developments?

In light of these developments regarding inflation and the rise in bond yields, the US dollar index rose significantly in the markets, and settled at the highest level of 109 points, as it is currently trading near the level of 109.20 points, with an increase of 0.80% and awaits any new developments in the markets.

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