The currency appears as a safe haven of value in a climate of instability marked by elections, interest rate decisions and concerns about international growth.
He global dollar reached his fourth weekly profitwith stability supported by expectations of fewer rate cuts by the Federal Reserve (Fed) in the coming months and by the growing market bets on a possible return of donald trump as president of USA.
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies— rose 0.18% to 104.24 and appreciated 0.74% in the week, constituting the longest stretch of rallies dollar weekly since February.
Meanwhile, the US currency fell 0.22% against the euro to 1.0803 dollars, while against the Japanese yen, the dollar strengthened 0.26% to 152.21 and the pound sterling fell 0.02 % up to $1.2969.
Expectation for the data that the United States will release next week
Regarding the economic data in USA, he Department of Commerce He said that the requests for capital goods Non-defense excluding aircraft, a closely watched indicator for business spending plans, rose 0.5% last month after an unrevised 0.3% increase in August and up from 0.5%. .1% estimated by economists surveyed by Reuters.
Additionally, a separate report from the University of Michigan showed that the consumer confidence October rose to 70.5 from 70.1, beating the estimate of 69.0, while the outlook for inflation one year fell to 2.7% from the preliminary reading of 2.9%, but in line with the final result in September.
Investors are now focusing on the report government payrolls October to be published next week, which will probably be affected by a strike in Boeing and two hurricanes that hit the southeastern United States.
“We have had a massive recalibration of economic expectations for the United States and that process appears to have largely run its course; the Fed’s policy path appears much more reasonable and interest rate differentials between the United States and other economies are stabilizing here,” he said. Karl Schamotta, chief market strategist at Corpay in Toronto.
“It’s clear that payroll data is the key variable, and it’s still an open question whether the September number was a huge move or an aberration, a statistical aberration, and so next week’s report will help clarify that, but The reality is that we are also going to take it very cautiously,” he added.
Source: Ambito
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