The US dollar ignores negative data and continues to rise

Thursday, June 13, 2024 - 18:31
Point Trader Group

The US dollar continued its upward movements during trading on Thursday, despite the negative data on producer prices in the United States for the month of May, which showed a slowdown in the growth of producer prices to record an increase of about 2.2% on an annual basis, less than expectations that expected it to record 2.5%, noting that the reading April recorded 2.3%.

At the same time, the core US Producer Price Index rose by 2.3% year-on-year in May, which was a lower reading compared to market expectations for the US Producer Price Index to record the same reading as April of 2.4%.

Also, official data also showed an increase in the number of US aid applications last week by 242 thousand new applications, while the markets expected an increase in the number of aid applications by only 225 thousand new applications, which reflects the decline in the volume of employment and its potential repercussions on consumer spending and thus, Price levels.

However, the US dollar reacted negatively and temporarily to these data, but soon the dollar was able to rise again, approaching breaking the 105-point level again, as the markets were still affected by the speech of the US Federal Reserve Governor, Jerome Powell, in which he explained that the report The May CPI is encouraging but policymakers also want to see more good data to gain confidence before ending the tightening approach, which provided strong support for the dollar's moves.

On the other hand, the dollar still enjoys strong support following the US Federal Reserve’s recent forecasts, which revealed the possibility of cutting interest rates only once this year due to the strong labor market and high inflation.

In terms of currency market trading today, the US dollar index (which measures the performance of the greenback against a group of other major currencies) rose by 0.15% to record about 104.84 points.

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