He global dollar rose on Thursday thanks to data on the labor market and the manufacturing sector in USA, against the grain of euro, that went down after the European Central Bank (ECB) keep interest rates unchanged. In Uruguay, Where there was no activity today due to the holiday, the currency returned to a positive path.
With late reactions to the news of the first hours of the day, the dollar index The dollar —which measures the greenback’s performance against a basket of six major international currencies— gained 0.49% to 104.18 units after hitting a four-month low of 103.64 units on Wednesday.
Likewise, in front of the and in Japanese, the dollar strengthened 0.7% to 157.26 points, recovering from a fall in the previous session that sparked speculation about intervention by Japan. Analysts attributed the weakness to comments by the US presidential candidate Donald Trump on the strength of the dollar.
In USA, Weekly initial claims for unemployment benefits rose 20,000 to 243,000, above the 230,000 estimate of economists polled by Reuters, although this is not considered a significant change in the labor market due to seasonal factors.
On the other hand, the ECB maintained rates, as expected, although it gave no clues about its next move, arguing that the internal pressures on prices remain elevated and that inflation will remain above its target well into next year. This led to the euro fell 0.37 percent to $1.0897, after hitting a four-month high of $1.0947 in the previous session.
“The ECB may have been the first to cut, but it won’t be the fastest,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin. “When the ECB last cut, it did so cautiously, now every meeting is going to be a data-driven meeting,” he added.
Instead, “when the Federal Reserve cuts, it will do so with confidence, and not even a month or two of bad data will deter it from its cutting path.” “It is annoying that the Fed may be waiting so long to cut, but ultimately it will make the path clearer,” the analyst explained.
In Uruguay, the exchange rate resumed its upward path
In Uruguay, where today there was no activity in the meantime, dollar rose 0.36% compared to Tuesday and closed at 40.284 pesos, according to the exchange rate. Central Bank of Uruguay (BCU), resuming its upward path and remaining very close to its highest value so far this year.
With this improvement, the greenback has been above the 40 pesos range for five days and is located just cents from its mark of last Tuesday, the 2nd, which at that time broke its highest level in 20 months. Specifically, the dollar has accumulated a rise of 0.74% so far this month and the appreciation in the annual accumulation reaches 3.23%.
Source: Ambito
