U.S. dollar
The US dollar recorded a significant increase with the passage of trading today, Thursday, and recovered from its losses yesterday, Wednesday, in light of some positive developments that strengthened the demand for the US currency. The following are the most prominent influences on the dollar’s movements:
Economic data supports the recovery of the dollar
The US dollar managed to rise significantly, benefiting from the positive US economic data, on top of which was the economic growth data. The US economy grew by 3.2% during the third quarter of this year, and it was expected that the US economy would grow by only 2.9% during that period, after the previous reading recorded a growth of 2.9% during the second quarter of this year.
At the same time, data released by the US Labor Office today revealed that US jobless claims increased less than expected this week, as the number of US jobless claims amounted to the equivalent of 216 thousand new applications, which is less than market expectations, which indicated that it recorded 221 thousand applications. The previous reading of this indicator recorded about 211 thousand requests during the past week, which was revised to become 214 thousand requests, and this positivity had a strong role in supporting the dollar during trading.
Urgent – The final reading of US economic growth exceeds market expectations
Expectations of a rate hike boost the dollar’s strength
The US dollar continues to benefit clearly from the strengthening of expectations of raising US interest rates during the coming period, as Jim Caron, of Morgan Stanley Bank, said that the markets are wrong with regard to raising the federal interest rates in the coming period, and that people expect lower interest rates, but this is not true. , adding that we need to listen to what central bankers say and their concerns about inflation, and these expectations have a positive impact on the movements of the dollar.
HSBC Bank forecasts for the movements of the dollar-yen pair in 2023
Weak US bond yields reduce dollar profits
The profits of the US dollar decreased in conjunction with the weakness of US bond yields of various terms, as the 10-year bond yield decreased near the level of 3.673%, down by 0.30%. Also, the 20-year bond yield decreased by 0.17%, to 3.922%. At the same time, the yield on 30-year bonds stabilized, to record around 3.743%, down by 0.02%. This weakness in bond yields had a negative impact on the movements of the US dollar against other currencies.
US Unemployment Claims data is positive and better than expected!
How was the US dollar index affected by these developments?
In light of the increasing demand for the dollar today with the positive economic data, the dollar index rose significantly above the level of 104 points, as it is currently trading near the level of 104.36 points, up by 0.20%, and it awaits any new developments in the markets that may affect its trading.