2023-05-26 14:53:06
U.S. dollar
The US dollar witnessed large losses during early trading on the last days of the week, Friday, through which it gave up the profits it had achieved in the previous session, but then moved to erase those losses, as a result of the rebound that it witnessed following the release of the inflation indicator preferred by the US Federal Reserve, and the green currency is heading now towards achieving its third consecutive weekly profit.
dollar now
In terms of trading, the dollar index – which measures the performance of the US currency once morest a basket of six major currencies – settled at 104,222 points, erasing all its losses during early trading.
The most important factors that affected the dollar’s movements today
Data released on Friday in the US showed that the country’s personal consumption spending, which is the US Federal Reserve’s preferred measure of inflation, grew more than market expectations, while the bitches on durable goods also came out very positive.
This led to an increase in market expectations that the Federal Reserve may tend to raise interest rates once more during its next meeting in June, in order to control inflation, which is still very high, especially core inflation, which still shows great resistance once morest the impact of interest-raising decisions even now.
After today’s very positive data release, expectations have shifted to the Fed’s rate-tracking tool FedWatch In favor of the possibility of the US Federal Reserve continuing to raise interest rates at the next meeting, bets on raising it increased by 25 basis points to 58.5%, exceeding half, which provided great support for the dollar and helped it erase its early losses.
This came at a time when some Politica newspaper sources reported that the White House and the US House of Representatives had come close to reaching a final agreement on the main point of contention in the bilateral negotiations between them, which is cutting government spending, which boosted investor sentiment regarding the possibility of reaching an agreement on the issue of the US debt ceiling. Before it defaulted on its obligations at the beginning of June.
Meanwhile, the dollar was able to achieve strong weekly gains this week, as the currency is heading to achieve its third weekly gain in a row, following the dollar rose by 0.7% so far, with the possibility of continuing its rise until the end of the session.
The dollar in the major currency pairs
Regarding its trading once morest the other major currencies, the euro settled once morest the dollar at 1.0725 dollars, while the pound sterling rose once morest the dollar by regarding 0.26% to 1.2358 dollars.
At the same time, and once morest safe havens, the dollar rose once morest the Japanese yen by regarding 0.1%, recording 140.22 yen, while the dollar fell once morest the Swiss franc, by 0.14%, recording 0.9047 francs.
As for its performance once morest commodity currencies, the Australian dollar rose once morest its US counterpart by 0.12% to $0.6514, while the New Zealand dollar fell once morest the US by regarding 0.13% to $0.6055, and the US dollar stabilized once morest its Canadian counterpart at 1.3636 Canadian dollars.
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