The dollar index reversed Thursday’s decline and gained 0.09%, while global stocks rose to one-month highs.
He global dollar managed to close higher on Friday after falling overnight on US data showing fresh signs of cooling of the labor marketMeanwhile he and in fell after suspicions of intervention last week.
He dollar index, which compares the greenback with a basket of six prominent currencies, traded with a slight increase of 0.09%, at 105.31 units, after falling 0.3% on Thursday, following the preliminary survey by the University of Michigan on consumer confidence, which stood at 67.4 units for May, a six-month low and less than the estimate of 76 economists surveyed by Reuters. In turn, one-year inflation expectations rose to 3.5% from 3.2%.
Meanwhile, the euro fell 0.08% to $1.0772, while the dollar gained 0.26% against the and in, which was 155.86 units. Thus, it accumulated a weekly increase of 1.9% after having lost 3.4% last week, its largest weekly percentage decline since the beginning of December 2022, after two alleged interventions by the Bank of Japan.
For its part, the pound sterling fell 0.02% to $1.2525, after hitting $1.2541 after data showed the British economy had its strongest growth in almost three years in the first quarter of 2024, ending the recession which he entered in the second half of last year.
Alvin Tan, head of Asia FX strategy at RBC Capital Marketstold Reuters that the dollar is unlikely to fall too much, as high rates in the United States continue to make investments attractive. US bonds. “They continue to offer the highest rates in the world. G10. So that, along with the low volatilitysuggests that the dollar will remain supported,” he said.
Stocks rally on Fed cut hopes
The world stocks rose this Friday to one-month highs, due to the confidence that the Fed will soon begin cutting its interest rate. He MSCI index around the world rose 0.24%, to 1,390.38 points, since the variable income of Asia and Europe benefited from the rise of Wall Street the day before, after learning that the number of applicants for unemployment benefits increased for the first time more than expected.
Rather than slowing the stock market, the numbers are giving investors confidence in the Fed’s ability to cut interest rates this year, as Europe’s central banks have begun to lower borrowing costs.
He STOXX 600 it advanced 0.7% and the indices of Germany and France also reached record highs. STOXX rose 3% weekly after investors took a breather in April.
“What could have been a crack in the overall market uptrend has turned into an opportunity to get long again, and that’s what we’re seeing now in May,” said David Morrison, market strategist at Trade Nation.
Source: Ambito
