The US dollar rose against the euro and the pound sterling this thursday may 11 and marked maximums of more than a week against a basket of its main peers, since Traders sought safety after a series of economic data prompted a reassessment of their outlook for world monetary policy.
The dollar indexwhich tracks the performance of the US currency against its six major pairs, rose 0.7%, up to 102.06his highest level in over a week.
The British pound fell to a one-week low. of 1.2497 units0.9% less in afternoon operations, while the euro fell to a one-month low of $1.09or 0.6% less.
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He number of applications for unemployment benefits by the Americans reached its highest level in 1 and a half years last week, pointing to cracks in the labor market as demand slows, which could give the Federal Reserve room to stop further interest rate hikes next month.
“I think that the market is beginning to rethink the prospects for the Fed to cut rates after inflation, although lower, remained on the high side,” said Joe Manimbo, Senior Market Analystin convera in washington. “The dollar would win if markets take rate cuts off the table, a scenario that would allow it to maintain its yield advantage for longer.”
futures traders of the funds of the Federal Reserve still are assessing a pause before the rate cuts scheduled for September.
Besides, US producer prices recorded a moderate rise last month, registering the lowest annual increase in producer inflation in more than two yearsfurther proof that inflationary pressures were subsiding.
He producer price index for final demand rose 0.2% last month. In the 12 months to April, the PPI rose 2.3%. It was the smallest year-on-year rise since January 2021 and followed a 2.7% rise in March.
Source: Ambito
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