The super dollar takes flight reinforced by solid US data

The super dollar takes flight reinforced by solid US data

The dollar experience a rise today, heading towards its third consecutive month of profitssupported by the solid US economic growthsuggesting that interest rates will remain at elevated levels for an extended period. Meanwhile, the yen remains close to the level of 150 units per dollar.

In a report today, it is revealed that the US economy grows at its fastest pace in almost two years during the third quarterthanks to higher wages in a tight labor market that boost consumer spending.

These dates, along with a series of positive reports on business activityreinforce the expectation that the Federal Reserve will maintain its restrictive monetary policy for an extended period, which is driving the dollar higher this week.

Dollar: the data observed by the market

The dollar index increases by 0.17%, reaching 106.75, after hitting a three-week high from 106.89 in the previous session, and is heading for a weekly increase of 0.35%.

On the other hand, The euro experienced a decrease of 0.2%, trading at 1.0539 dollars, with a weekly loss of 0.5%. The European Central Bank (ECB) keeps interest rates unchanged, as expected, ending an unusual series of 10 consecutive increases.

Data at the start of the week revealed an unexpected deterioration in euro zone business activity. The pound sterling also lost 0.2%, standing at $1.2108, just above Thursday’s three-week low of $1.2070.

The feeling of risk remains generally moderate after a bearish session on Wall Streetwhich drives down stocks and props up US Treasuries, putting downward pressure on yields.

The yen, for its part, gained 0.2%, trading at 150.08 units per dollar, although it remains close to the one-year low recorded on Thursday at 150.78.

Source: Ambito

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