full screen background image
Search
Saturday 21 July 2018
  • :
  • :

Forex – U.S. Dollar Higher on Positive Economic Data, Euro Weakness

Forex3 hours ago (Jul 11, 2018 12:58PM ET)

Investing.com – The dollar rose Wednesday as data showing U.S. wholesale prices increased at a faster pace than anticipated last month raised investor expectations for stronger inflation, increasing the prospect of further Fed rate hikes.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.36% to 94.19.

The Labor Department said on Wednesday its producer price index for final demand increased 0.3% last month.

In the 12 months through June, the PPI rose 3.4% after rising 3.1% in May. This was the biggest annual increase in 6-1/2 years, stoking expectations the Fed could adopt a more aggressive stance on monetary policy tightening to rein in inflation.

Euro weakness also pushed the greenback higher, as the single currency pared gains which followed a report ECB members were split over when to raise rates.

Some policymakers said an increase was possible as early as July 2019, while others suggested a move was unlikely until autumn next year, Reuters reported Wednesday, citing sources.

EUR/USD fell 0.33% to $1.71705.

The return of U.S.-China trade war jitters, meanwhile, did little to lift safe-haven currencies as both the yen and Swiss franc were under pressure against the greenback.

USD/JPY rose 0.83% to Y111.91, while USD/CHF rose 0.30% to 0.9923.

The White House issued a list late Tuesday of 10% tariffs on $200 billion worth of Chinese imports it will assess.

USD/CAD rose 0.26% to C$1.3148 after Bank of Canada raised interest rates Wednesday, and said it expected GDP to come in at 2.8% for the year.

But analysts said the 2.8% year-end GDP target was somewhat optimistic, and suggested that the loonie would continue to weaken.

“As things stand today, the 2.8% predicted growth for 2018 Q2 looks a touch optimistic … We remain biased for USD/CAD to re-test its 2018 highs in the coming weeks and months,” TD Securities said in a note to clients.

GBP/USD fell 0.42% to $1.3220.

Forex – U.S. Dollar Higher on Positive Economic Data, Euro Weakness

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.