The US dollar fell in the European market on Thursday against a basket of global currencies, to abandon the highest level in six weeks recorded yesterday, due to the activity of correction and profit-taking operations, in addition to the slowdown in the yield of US Treasury bonds for ten years.
Later today, investors are awaiting the release of important data from the United States on producer prices in January, which is a leading indicator of what consumer prices will be in February, and on weekly jobless claims.
US dollar index
The dollar index decreased by 0.3% to the level of 103.53, from the opening level of today’s trading at 103.82 points, and recorded the highest level at 103.89 points.
The index ended yesterday’s trading up by more than 0.3%, recording the highest level in six weeks at 104.11 points, after very strong data on retail sales in the United States.
Data showed on Wednesday that US retail sales rebounded in January, after a two-month decline in a row, registering a rise that far exceeded experts’ expectations, which indicates the resilience of the US economy despite the high borrowing costs in the country.
Strong retail sales numbers, along with data on Tuesday that showed better-than-expected consumer prices, fueled fears that the Federal Reserve will keep interest rates higher for longer.
US bond yield
The US Treasury bond yield fell today, Thursday, by more than 1.0%, to give up the highest level in six weeks recorded in earlier trading at 3.828%, which may record the first loss in the last three sessions, due to corrections and profit-taking, which reduces chances Investing in the US dollar.
The current pricing of futures contracts for the possibility of raising the federal interest rates by 25 basis points on the 22nd of next March is currently stable at 92%, and the odds of raising the federal interest rates by 25 basis points on the 3rd of May are at 75%.
Later today, investors are awaiting the release of a number of important data from the United States, perhaps the most important of which is data on producer prices in January, which is a leading indicator of what consumer prices will be in February, and other data on unemployment claims. weekly.
The strong data will enhance the possibility of the Federal Reserve continuing to raise interest rates for as long as possible during this year, which is in favor of the rise of the dollar and US returns.
Released at 13:30 GMT, the producer price index is expected to rise by 5.4% annually in January from a rise of 6.2% in December, with a monthly reading expected to rise by 0.4% from a decline of 0.5% for the month. the previous.
At the same time, US jobless claims are expected to reach 200,000 in the week ending February 11, from 196,000 the previous week.