Dollar rises as strong US data bolsters position for higher rates | – #Dollar #rises #strong #data #bolsters #position #higher #rates
NEW YORK/LONDON, February 16 (Reuters) – Data provided january The U.S. dollar rose to a six-week high against a basket of currencies on Thursday after data showed that producer prices for the month were higher than expected and jobless claims fell. monetary policy should be kept tight for a while to reduce inflation.
Against the backdrop of economic reports USA Its currency also hit new six-week highs against the yen, euro and Australian dollar.
USA producer prices index rose to 0.7%, higher than both the 0.4% consensus forecast and the December figure, which showed a 0.2% decline.
According to a Reuters poll, USAunemployment claims data in 20Solid with 194,000 claims compared to 0,000 expectations labour showed the market.
Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said, “Especially inflation we had a flow of information on the front. The data was positive. Incomes are increasing,” he said.
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“So we see some respite in the recent softness in the dollar. Dollar it seems likely to rise again anyway. A lot of good news has already translated into the euro over the past few weeks,” he added. .
In late morning trading dollars index rose 0.2% to 104.02, before hitting a six-week high of 104.24.
Against the yen, the US dollar also hit a six-week high, but was little changed at 134.19 in the last day. Yen traders on February 24 of parliament in the lower house, they are waiting for Kazuo Ueda, the candidate to become the next governor of the Bank of Japan, to speak at the confirmation hearing.
The interest rate futures market suggests that US interest rates could approach 5.25% by July before falling to 5.0% by the end of the year.
Thursday’s data followed strong economic numbers on Tuesday and Wednesday.
U.S. retail sales fell after two straight months of declines, data from the U.S. Commerce Department showed on Wednesday january increased sharply in the month.
This is the United States inflation It came a day after its figures showed consumer prices were slowing but still sticky. Data from the beginning of this month also showed that the growth of jobs in the United States january accelerated sharply in 2018, which indicates a sustainable economy.
However, the question for market watchers is how well the economy can hold up, especially since rates are higher than many initially thought.
“The data is coming in strong and it’s leading people to assess the ‘Armageddon-recession’ scenario that everyone expected at the start of the year, but I’m not sure that one CPI and one retail sales print is enough for everyone. once again thinking all is well with the economy,” said TraderX strategist Michael Brown.
The euro fell by 0.2% to 1.0671 dollars has been of Europe at the beginning of the session unit currency fell to $1.0655, the lowest since January 9. However, it is still at the end of September 20 is more than 11% of the annual minimum indicator.
euro
Sterling, which lost more than 1% on Wednesday, fell 0.3% to 1,20It fell to 05 dollars.
Britain inflation slowed more than expected in January and there are signs that price pressures are easing in some parts of the economy, such as services, which the Bank of England (BoE) is closely watching.
The BoE has already indicated that it may stop raising rates in March, and on Wednesday inflation data reinforced this idea.
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10Currency bid at :58 prices (1558 GMT)
Added by Rae Wee in Singapore report; Edited by Simon Cameron-Moore, Mark Potter and Sharon Singleton
Our standards: Thomson Reuters Trust Principles.
2023-02-16 22:32:44
Source – reuters
Translation“24 HOURS”