The index dollar reaches its highest level in six months this Thursday, as economic data was mostly stronger than expected and the European Central Bank (ECB) indicated that it had finished its cycle of increases interest rates.
U.S. retail sales rose 0.6% in August, above the 0.2% forecast, boosted by rising diesel prices, while initial weekly utility subsidy claims unemployment They rose to 220,000, but were below the 225,000 expected.
The rise of diesel prices It also affected the latest inflation data, as the producer price index for final demand rose 0.7% last month, the highest in more than a year, and above the estimate of 0.4 %. He dollar index It rose 0.5% to 105.18, just below the 105.31 level hit earlier in the day, its highest since March 10.
Euro: how the ECB’s decision impacts
He euro plummets against the dollar after the ECB raised its official interest rate to a all-time high of 4%although he indicated that it would probably be the last measure in his fight for more than a year against inflation, as the eurozone economy continues to falter.
The euro falls 0.64%, to 1.0655 dollars, after losing up to 1.0651 dollars, its lowest level since May 31.
“(ECB President Christine) Lagarde is hinting that this could be the last hike, because she is saying that if we keep rates like this for a certain period of time, this will do the job against inflation,” said Erik Bregar, director Silver Gold Bull’s currency and precious metals risk management team in Toronto.
Fed: what to expect with rates
“Furthermore, I believe that all the data from USA this morning have been better than expected: jobless claims, retail sales, general PPI, so it’s like a double boost for the dollar”.
Despite the economic data from the United States, opinions on the Federal Reserve remained largely intact, with expectations that the central bank will keep rates stable at the conclusion of its September 19-20 monetary policy meeting at 97%, according to CME’s FedWatch tool, slightly up from 96% on Wednesday.
The pound sterling It was trading at 1.2418 dollars, 0.58% less on the day, after falling to 1.2411 dollars, its lowest in three months, while, against its Japanese pair, the dollar lost 0.11%, to 147 .28 yen.
Source: Ambito
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