Advertisement

Dollar Surged Over the Past 2 Months Following Barrage of Strong Economic Data

0
142
The US dollar has soared over the past two months thanks to a barrage of strong economic data. 
Advertisement

______________________________________________________

The dollar wiped out this year’s losses over the past 2 months following a barrage of strong economic data

George Glover 
Sep 9, 2023, 5:00 AM EDT

  • The dollar has surged over the past two months thanks to strong economic data.
  • One gauge of the greenback’s strength has rallied 5% since July 13.
  • The buck recently hit a six-month high, with inflation cooling and the jobs market staying strong.

The dollar has enjoyed a remarkable turnaround over the past two months, wiping out all of its losses for 2023 following a slew of economic data signaling that the US won’t suffer a long-predicted recession.

The US Dollar Index, which measures the greenback against a basket of six currencies, has rallied by 5% since July 13 and nearly 1% over the past five trading sessions alone.

On Thursday, the gauge hit a six-month high after data released the previous day showed service-sector activity expanded more than forecasters expected in August.

Those figures were just the latest in a long line of strong data points from the past two months, with inflation cooling to 3.2% in July and unemployment holding steady at under 4% in August.

The economic winning streak sets the dollar apart from its competitors – with China’s ongoing post-lockdown struggles making the buck a more attractive investment than the renminbi, according to IG analyst Axel Rudolph.

Signs of weakness in China’s own services sector dragged the yuan to a 16-year low and “helped push the greenback to fresh six-month highs on flight-to-quality flows,” he said in a research note this week.

______________________________________________________

Advertisement

______________________________________________________

The dollar may also have benefited from speculation that the Federal Reserve isn’t yet done with its battle against soaring prices. 

About 40% of traders expect the central bank to raise interest rates again before the end of 2023, according to the CME Group’s Fedwatch tool, which boosts the greenback’s appeal to foreign investors seeking juicier yields.

Source: Markets Insider

______________________________________________________

If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

______________________________________________________

Advertisement

______________________________________________________

Copyright © 2022 Dinar Chronicles

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here