Dollar Eases Despite Great U.S. Data
The greenback has impishly receded despite having a terrific run. The U.S. currency has settled down today despite having positive outcomes on newly released U.S. data and fails to extend the near seven-week high the dollar has experienced after the massive bullish run this week. On the other hand, stocks are in fear as the dollar regains strength and recuperate losses from foreign pairs.
The surging dollar is going to eventually creep into stock prices, and when it does, it won’t be any pretty. Stock prices remain under pressure due to the sudden reverse performance that the dollar is giving, and the amount it has been recuperating these past few weeks.
Dollar Surges Then Depletes
It is no surprise that the dollar price has remained strong and that it is still going; just this week, the greenback manages to hit a new milestone and even inching closer to a seven-week high today. On a monthly performance basis, the dollar managed to speed ahead of the competition and miraculously gain a total of 3% over September.
The dollar index also managed to keep its composure and also tallied increases versus a basket of currencies in the past month as well. Today, the dollar eases despite great economic news and U.S. data, analysts are pointing out that the supportive news and data are not the problem; the dollar seems to be the problem with too many gains that it leaves no more room for increases.
Another analyst is also saying that the dollar will continue its bullish run due to the fact that the market continues to go soft in terms of major announcements. On the bleaker side, the expectations for the next interest hike have gone deaf despite the booming economic performance from the country.
Dollar Index Price
Despite the softer performance today; the dollar index, which tallies the dollar performance against major currencies, is up by an incremental 0.1% to 93.55. It also managed to hit the 93.92 high last Tuesday which is considered to be a seven-week high.
According to the global head of currency strategy at Brown Brothers Harriman, Marc Chandler, “The two powerful forces that have emerged - expectation of a Fed hike at the end of the year and European political challenges - appear to have reached a tentative equilibrium,”
Stock prices Under Pressure
The stronger U.S. currency is a massive threat to the stocks; the massive price of the dollar affects the U.S. product’s price abroad which makes them less lucrative and less competitive. This whole
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!