On Friday morning, early European trading saw a slight dip in the value of the US dollar. Although this setback did not shake the currency's persistent upward momentum, it is expected to secure its third consecutive weekly increase. The market uncertainty caused by rising speculations of an accompanying interest rate hike remains to be seen.
At 03:15 Eastern Time (07:15 Greenwich Mean Time), the Dollar Index posted a decrease of 0.1%, reaching 104.040 - just below yesterday's two-month high of 104.31. Even with this minimal decline today, the US currency is set for a near one-percent weekly gain.
As traders position themselves for possible sustained high-interest rates, Thursday revealed moderate growth in Americans filing new unemployment claims, which now stand at 229,000; personally-consumed expenditure index data will be available today and should provide further insight into signs of inflation. The Federal Reserve Bank will analyze the information carefully before its June policy meeting where observers expect interest rates to increase.
Despite speculation on both sides, futures traders seem evenly split between predicting another imminent hike and anticipating a pause in that regard
During this week reports suggest that investors turned to the US dollar as a safe haven due to uncertainty about raising the U.S.government debt ceiling presently sitting at $31.4 trillion as 'early June' draws closer: although progress has reportedly been made in approaching solutions between parties experienced enough still weigh down any positive outcome.
Besides market fluctuations involving exchange values against other currencies like EUR/USD which slightly increased earlier at 1.0731- despite European Central Bank hinting about controlling inflation through potential interest rate hikes.
Image by Thomas Breher from Pixabay
At 03:15 Eastern Time (07:15 Greenwich Mean Time), the Dollar Index posted a decrease of 0.1%, reaching 104.040 - just below yesterday's two-month high of 104.31. Even with this minimal decline today, the US currency is set for a near one-percent weekly gain.
As traders position themselves for possible sustained high-interest rates, Thursday revealed moderate growth in Americans filing new unemployment claims, which now stand at 229,000; personally-consumed expenditure index data will be available today and should provide further insight into signs of inflation. The Federal Reserve Bank will analyze the information carefully before its June policy meeting where observers expect interest rates to increase.
Despite speculation on both sides, futures traders seem evenly split between predicting another imminent hike and anticipating a pause in that regard
During this week reports suggest that investors turned to the US dollar as a safe haven due to uncertainty about raising the U.S.government debt ceiling presently sitting at $31.4 trillion as 'early June' draws closer: although progress has reportedly been made in approaching solutions between parties experienced enough still weigh down any positive outcome.
Besides market fluctuations involving exchange values against other currencies like EUR/USD which slightly increased earlier at 1.0731- despite European Central Bank hinting about controlling inflation through potential interest rate hikes.
USD maintains promise with regard to resting fears from speculation regarding continued sustained high-interest rates or stunted economic growth among other things beyond current expectations Joachim Nagel, President of Bundesbank stressed on Thursday how eliminating threats of inflation lies within decisive actions taken by the Eurosystem; further emphasizing expectations for ECB Governing Council movement towards tight monetary policies geared towards addressing inflations impact on economies across Europe if need be.
Conversely better than anticipated British Retail Sales in April showed growth at an increased rate of .05%, beating predicted growth rate levels while exhibiting improvements over prior months' meager decrease rates .
In spite Of the UK's high inflation (top among G7 countries) along with Italy, consumers continue to remain resilient throughout and are expected to further prompt interest rate increases by the Bank of England next month.
USD/JPY's near six major times low of a .02% dip signals that the Bank of Japan's present policy on hold is expected to last for this financial year.
The AUD/USD rose by 0.3% reflecting a rebound from its previous position close to six-month lows; market signals highlighted a 0.4% decline positioning the USD/CNY from the possibility of off-key level seven upheaval indicating potential repercussions in China's economy.
Conversely better than anticipated British Retail Sales in April showed growth at an increased rate of .05%, beating predicted growth rate levels while exhibiting improvements over prior months' meager decrease rates .
In spite Of the UK's high inflation (top among G7 countries) along with Italy, consumers continue to remain resilient throughout and are expected to further prompt interest rate increases by the Bank of England next month.
USD/JPY's near six major times low of a .02% dip signals that the Bank of Japan's present policy on hold is expected to last for this financial year.
The AUD/USD rose by 0.3% reflecting a rebound from its previous position close to six-month lows; market signals highlighted a 0.4% decline positioning the USD/CNY from the possibility of off-key level seven upheaval indicating potential repercussions in China's economy.