2023-06-27 17:09:21
The price of the dollar is USD
The US dollar index declined clearly during trading today, Tuesday, despite the positivity of some US economic data, on top of which was the consumer confidence data issued a few hours ago. However, there are some developments that weakened the demand for the dollar, the most prominent of which are as follows:
The strength of the euro pushes the dollar index lower
Given the importance of the euro currency within the relative weight in the US dollar index, which amounts to 60% of the relative weight of the dollar index, and in light of the clear rise in the euro index during today’s trading due to the optimistic statements by the members of the European Central Bank regarding the need to continue raising interest rates following the one-month meeting. Next July, specifically during the September meeting, and this optimism and tightening statements in Europe had a clear negative impact on the dollar index.
The markets are awaiting the statements of US Federal Reserve Chairman Jerome Powell
US Federal Reserve Governor Jerome Powell is scheduled to speak tomorrow at 1:30 pm GMT, and the currency markets always closely monitor the governor’s statements, given that he gives hints or indications regarding the future of US monetary policy in the upcoming bank meetings, which has strong repercussions on the movements The dollar once morest other currencies, especially since market expectations currently tend to raise the interest rate during the next July meeting, but tomorrow’s statements may have another opinion, and this makes investors fear the demand for the dollar.
Positive US economic data prevents the strong dollar from weakening
The US dollar received support due to the issuance of some positive economic data, led by consumer confidence data, which supports and strengthens market expectations regarding raising US interest rates, as the US consumer confidence index data issued today, Tuesday, by the Conference Board, indicated that the index recorded a very positive reading during the month of June. According to the data, the US Consumer Confidence Index scored regarding 109.7 points, which is higher than market expectations, which indicated that it would score only regarding 103.9 points. .
How was the dollar index affected by these developments?
In light of these developments and the weak demand for the US dollar, the dollar index decreased by 0.20% and scored regarding 102.49 points, and new developments are expected in the coming days that will have a strong impact on trading.
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