USD Strength Continues for the Fourth Day
The US Dollar (USD) is on a winning streak, gaining momentum against its competitors for the fourth day in a row as the market eagerly awaits key macroeconomic data from the US. Here’s what you need to know:
US Economic Data Releases Today
- The US Department of Labor will release the weekly Initial Jobless Claims data.
- August Factory Orders and September ISM Services PMI data are also on the economic docket.
- Federal Reserve Bank of Minneapolis President Neel Kashkari and Federal Reserve Bank of Atlanta Raphael Bostic will be delivering speeches.
US Dollar Price This Week
The US Dollar has shown strength this week, particularly against the Japanese Yen. Here is the percentage change of USD against major currencies:
- USD: 2.90%
- EUR: -1.21%
- GBP: -1.69%
- JPY: -2.90%
- CAD: 0.09%
- AUD: 0.59%
- NZD: -1.64%
- CHF: -1.30%
USD Index Hits One-Month High
The USD Index has climbed to its highest level in a month, currently trading at around 101.80. Despite this, US stock index futures are in negative territory, reflecting a cautious market sentiment.
EUR/USD and GBP/USD Under Pressure
- EUR/USD closed below 1.1050 on Wednesday and continues to trade near 1.1030.
- GBP/USD is facing bearish pressure, trading at its lowest level in over two weeks near 1.3150. Bank of England Governor Andrew Bailey’s comments on potential rate cuts have weighed on the Pound.
USD/JPY Surges and Pulls Back
USD/JPY saw a significant surge on Wednesday but has retraced slightly from its peak. The pair is currently trading below 146.50 after touching 147.24.
AUD/USD Resilient Despite Data
Despite declines in Australian exports and imports, AUD/USD remains steady around 0.6860.
Gold Holds Ground Amid Geopolitical Tensions
Gold managed to hold its ground despite USD strength, trading below $2,650.
US Dollar FAQs
- The USD is the most traded currency globally, accounting for over 88% of all foreign exchange turnover.
- The value of the USD is heavily influenced by the Federal Reserve’s monetary policy, which focuses on price stability and full employment.
- The Fed’s tools, such as interest rate adjustments, quantitative easing (QE), and quantitative tightening (QT), can impact the USD value significantly.
In conclusion, the USD’s strength and the upcoming US economic data releases are crucial factors to monitor for investors and traders. Understanding the impact of these developments on currency pairs and commodities can help individuals make informed decisions regarding their financial investments and future planning.