The personal consumption expenditures index, one of the most important data for the Fed, influenced the performance of the currency.
He global dollar remained stable on Friday, pressured by a drop in bond yields. Treasury bond after a report of inflation in USA moderate, which investors said kept the path clear for the expected monetary easing of the Federal Reserve in September. In Uruguay, he dollar closed the week lower.
He dollar index —which buys the performance of the greenback in relation to a basket of six internationally important currencies— fell 0.04% to 104.29 units after marking a recovery during the previous day, due to the faster than expected growth of the American economy, hand in hand with an increase in the inflation slowed during the second quarter.
For its part, the and in dominated currency markets this month, hitting a near three-month high of 151.945 per dollar on Thursday. It started the month at a 38-year low of 161.96 before the U.S. intervention Bank of Japan and expectations of a change in monetary policy unwound short yen carry trade positions. The dollar weakened 0.1 percent against the yen to 153.77.
Meanwhile, the euro rose 0.13% to $1.0858, while the pound sterling The dollar rose 0.17 percent to $1.2873, still well off the one-year high of $1.3044 hit last week, with traders pricing in a 50 percent chance that the Bank of England will cut rates next week.
The influence of inflation data in the United States
The price index of the personal consumption expenditure (PCE) published by the US Department of Commerce rose 0.1% in June, as expected, after remaining unchanged in May, underscoring an improving inflation environment.
On a year-on-year basis, the measure gained 2.5% after advancing 2.6% in May, also in line with forecasts of economists polled by Reuters. Fed The data are closely watched for monetary policy, and easing inflation pressures could help policymakers meeting next week gain confidence that inflation is moving toward the central bank’s 2% target.
Steve Englander, head of G10 currency research at Standard Chartered Bank in New York, said PCE data released a day earlier coupled with a surprisingly strong 2.8% second-quarter GDP growth rate sparked last-minute anxiety about the hottest monthly data.
So the increase reported Friday was a relief compared with Thursday’s figure that showed core PCE prices rising at a 2.9% rate.
Source: Ambito
