Investors eagerly await data including producer inflation, retail sales and weekly jobless claims.
He dollar experiences a strong rise while waiting for United States economic data. The greenback index, which measures the performance of the US dollar against a basket of six major currencies, records an increase of 0.14%, reaching 102.89.
Even though Tuesday’s US consumer inflation data beat expectations, the index has remained mostly stable since then, showing an increase of 1.5% so far this year. This increase reflects the perception that the US economy remains strong, leading investors to temper their expectations for interest rate cuts.
Investors are eagerly awaiting data due at 12:30 GMT, including producer inflation, retail sales and weekly jobless claims, for clues on the timing of potential rate cuts.
Dollar vs. other currencies
Additionally, the Bank of Japan concludes its meeting monetary policy next weekfollowed by the Federal Reserve and the Bank of England, which adds uncertainty to the global economic outlook.
Meanwhile, The euro shows a slight drop of 0.1%, trading at $1.0937, while the pound sterling registers a slight increase at $1.2806..
Overall, the market reflects a high probability, based on prices, that the Federal Reserve will make interest rate cuts through June.
Finally, the dollar barely changes against the yen, trading at 147.9, registering losses of 2% in the last two weeks. Investors remain on guard over the possibility that the Bank of Japan will raise interest rates and remove them from negative territory at its next meeting.
Source: Ambito
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