Super dollar strengthens amid weak global economic data

Super dollar strengthens amid weak global economic data

In a day of high contrasts in the currency markets, the dollar American continued its rise this Wednesday, maintaining the upward trend that had manifested itself the previous day.

For its part, the Australian currency failed to sustain its profitsaffected by unexpected inflation data that increased expectations of a soon increase in prices interest rates.

Investors’ eyes also turned to the Canadian dollar, as the US dollar advanced 0.2% against the Loonie, reaching a value of 1,367 Canadian dollars. This move came just before the Bank of Canada meeting, where interest rates were anticipated to remain unchanged.

The dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.2% to 106.42, after rising 0.65% the previous day. This increase was due in part to the news that S&P Global’s US Composite Purchasing Managers’ Index had reached its highest level. since July, which could give the Federal Reserve room to keep interest rates at high levels.

Dollar: weak economic data

This outlook contrasts with the weak data from the European Purchasing Managers’ Index (PMI) published on the same day. Nevertheless, There was a positive sign as confidence among German businesses increased in October, according to a survey published on Wednesday..

Regarding the main currencies, the euro fell 0.1%, standing at $1.0577, while the pound sterling experienced a fall of 0.22%, trading at $1.2133.

The currency that showed the most volatility during the day was the Australian dollar, which rose up to 0.7%, reaching a nearly two-week high of $0.6400. This is due to the news that Australia’s consumer price index had increased by 1.2% in the third quarter, exceeding market expectations of 1.1% and the 0.8% recorded in the previous quarter.

This surprising figure led traders to raise the odds of a possible interest rate hike by the Reserve Bank of Australia (RBA) next month, what would be a change after four pauses in the cost of credit. However, the Australian dollar failed to maintain its gains and fell 0.2% to $0.634.

Meanwhile, the strength of the US dollar keeps the Japanese yen near the 150 level, with the Japanese currency trading at 149.92 per dollar. This keeps traders on alert for possible interventions by the Japanese authorities.

Source: Ambito

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