Prior to the release of important inflation data, the US dollar increases
Early Friday morning trading in Europe saw the US dollar continue to rise, setting up the currency to have another successful week. This is true even if some traders are being cautious ahead of next week’s crucial inflation data release.
Dollar Performance
The US dollar index, which compares the dollar to a basket of six other currencies, was trading 0.1% higher at 103.207 as of 03:30 ET (07:00 GMT). This is the first time since October that two weeks in a row have been productive.
For the First Time in Six Weeks, Jobless Claims are Up
According to data, more Americans than anticipated last week applied for jobless benefits. The numbers are still historically low, despite the first uptick in six weeks.
Position of the Federal Reserve on Inflation
In a speech earlier this week, Federal Reserve Chair Jerome Powell struck a dovish tone while reiterating his support for disinflation. As the week has gone on, some Fed members have, however, expressed a willingness for more interest rate increases.
According to Powell, “With demand declining but still resilient, solid labor markets, and the lingering impact of the war in Ukraine, it’s not unexpected that inflation is still elevated even though it’s probably passed its top.”
Attention to US Inflation Data
The next US inflation data, scheduled for release on Tuesday, has now taken center stage since it will shed further light on the disinflationary situation.
Other Currencies’ Performance
In other currency developments, the Japanese Yen held steady at 131.59 while the Euro fell 0.1% to 1.0726. Australian dollar, a risky currency, fell 0.2% to 0.6923.
Following the release of statistics showing a 0.5% decline in the UK GDP in December, the British pound dropped 0.1% to 1.2105. The fourth quarter saw little change in the economy, narrowly averting a technical recession.
As a result of statistics showing slower-than-expected growth in January and the country’s trade surplus continuing to widen throughout the month, the Chinese Yuan increased 0.3% to 6.8013.