Dollar strengthens after two days of falling
2022.12.06 03:30
Dollar strengthens after two days of falling
Budrigannews.com – After strong U.S. services data on Tuesday, the U.S. dollar continued its strong gains from the previous session in early European trade, while the euro fell despite impressive German industrial production numbers.
After Monday’s 0.7% rally, its largest since Nov. 21, the, which tracks the dollar against a basket of six other currencies, rose 0.1% to 105.312 at 02:55 ET (07:55 GMT).
The unanticipated rise in the Institute for Supply Management on Monday led to a rise in the dollar, indicating that the nation’s dominant services sector remained resilient in November despite the Federal Reserve’s aggressive rate hikes to combat inflation at historic highs.
This followed Friday’s stronger than anticipated increase, raising concerns that the will be permitted to continue its 75 basis point interest rate increases for the fifth meeting in a row next week.
Last week, a speech by Federal Reserve Chair Jerome Powell that suggested a slower pace for rate hikes led to a 1.3% decline in the dollar. Meanwhile, signs that the Chinese government was loosening their strict COVID mobility restrictions helped risk sentiment.
Tuesday is a quiet day for U.S. economic data, and the Federal Reserve’s policymakers are in their usual blackout period ahead of their last meeting for 2022 next week. Therefore, trading ranges may be tight until Friday’s U.S. data for indications of the hawkishness of the central bank.
fell 1% to 1.0480, continuing the overnight drop of 5% despite rising 0.8 percent month-over-month in October instead of the predicted 1%. The numbers for September were also revised to show a decrease of only 2.9% as opposed to the 4.0% that was initially reported.
Orders are still on track for a quarter-over-quarter decline, albeit one that is less severe than anticipated, according to the figures.
rebounded from Monday’s 0.9 percent decline to 1.2194 and 0.3 percent to 137.19.
increased 0.4% to 0.6725 following the widely anticipated 25 basis point increase in interest rates, indicating the possibility of further rate increases.
The bank cautioned that was far from cooling, which is likely to call for additional rate increases in the upcoming months.
climbed 0.5 percent to $6.951, close to the closely watched 7-per-dollar level, as traders awaited a nationwide relaxation of the country’s zero-COVID policy.
This week, the focus will be on data on Chinese trade on Wednesday, which will be used to evaluate how the economy fared in the face of increased COVID restrictions over the past month.
