2024-03-28 14:26:00
Investing.com – The dollar index reversed its direction immediately after the release of a number of important US data that would clarify the future path of the US Federal Reserve’s monetary policy.
The US dollar index, which measures the value of the dollar against a basket of six currencies, recorded 104.105, up 0.41% at 17:12 Riyadh time. The data came as follows:
University of Michigan data
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It showed a record reading of 79.4 in March. While economists expected the reading to record 76.5 points, the previous reading was 76.9 points.
In March, it recorded 2.9%, while expectations indicated an increase of 3%, as in the previous reading.
The poll also showed that the upcoming poll recorded 2.8%, and expectations indicated a recording of 2.9%.
At the same time, it recorded 77.4 points in the reading for the month of March, while expectations were at 74.6 points, and the previous reading recorded 75.2 points.
While it scored 82.5 points, expectations indicated a score of 79.4 points, as the previous reading.
GDP and unemployment
GDP data also appeared, as the United States witnessed a slowdown in the fourth quarter compared to the third quarter of 2023, as it recorded a growth of 3.4% during the last quarter of 2023 in the final reading, as the revised data revealed on Thursday. This number was higher than the increase announced in the second reading issued last month, which recorded 3.2%, but less than the increase achieved by the economy in the third quarter of 2023, when it witnessed growth of 4.9%.
This indicates that the US economic growth reading in the fourth quarter was revised upward by 0.2% compared to the previous estimate of 3.2%.
Meanwhile, the number of Americans filing initial claims for unemployment benefits declined last week, according to recently released data.
Last week, it recorded 210,000 applications, according to data from the US Department of Labor. While experts expected a registration of 212 thousand. As for the reading for the week before last, it recorded 212 thousand requests after being adjusted.
Thus, it recorded 211,000 requests in 4 weeks, after 211.75,000 requests were recorded in the previous reading after it was modified.
The weekly unemployment index provides very temporary data, and determines the amount of individuals claiming unemployment insurance for the first time during the past week. Traders see unemployment as an indicator that gives a simple indication of the future performance of the economy. A downward trend has a positive impact on a country’s currency, as workers tend to spend more money.
The dollar rose earlier today, Thursday, after the US Federal Reserve policymaker said that he was in no hurry to cut rates, while traders prepared for key economic data and hesitated to move on the yen due to fears of Japanese intervention.
The Japanese currency settled at 151.42 against the dollar after trading near the 152 level at its lowest levels since 1990 on Wednesday before Japan’s top monetary officials indicated they were ready to intervene to prevent further declines.
In the latest trading, the euro fell 0.33% to $1.0792, its lowest level in five weeks, and the British pound fell 0.25% to $1.2609. This left it up 0.16 percent to 104.6, its highest level since mid-February.
Speaking during late US trading hours on Wednesday, Federal Reserve Governor Christopher Waller said the disappointing recent inflation data underscores the US central bank’s reluctance to lower its short-term interest rate target.
Market expectations for the first rate cut at the Fed’s June meeting have been dampened somewhat. Current pricing also has a 60% chance, compared to 67% at this time last week, according to the Federal Reserve’s CME (NASDAQ:) monitoring tool.
“Waller is one of the Fed’s most important policymakers, and while I don’t see this as a big move, the comments have given some momentum to a market that has remained stuck in tight trading ranges,” said Lee Hardman, currency strategist at MUFGN. Extremely”.
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