The Dollar pushed higher against the Euro, Pound and all other major currencies in the wake of the release of U.S. inflation data that showed prices were rising at rates last seen in the early 1990s.
USD in broad losses after Q3 GDP misses expectations and consumer spending eases from extraordinary Q2 level.
The "Dollar stays warm as inflation runs hotter," is the verdict of one foreign exchange analyst following the release of U.S. inflation numbers for September.
A surprise rise in Americans signing on for jobless benefits has triggered a bout of Dollar weakness.
The Euro-to-Dollar exchange rate rose following the release of U.S. inflation data that came in below investor expectations.
The British Pound advanced against the Dollar but locked horns against the Euro following the release of some underwhelming U.S. jobs numbers.
The Pound-to-Dollar exchange rate advanced to 1.3785 in the wake of underwhelming U.S. data which eases pressure on the U.S. Federal Reserve to announce an imminent withdrawal of monetary stimulus.
When the U.S. Dollar is not benefiting from strong U.S. data it is benefiting from safe haven demand when market sentiment sours, creating something of a win-win environment for the global reserve currency.
The U.S. Dollar found fresh bidding interest in the wake of a strong U.S. employment report for July although this strength was more evident against the Euro, suggesting a more robust Pound-to-Dollar exchange rate profile going forward.
“Compensation costs for private industry workers increased 3.1 percent over the year. In June 2020, the increase was 2.7 percent.”
“In the second quarter, government assistance payments in the form of loans to businesses and grants to state and local governments increased, while social benefits to households, such as the direct economic impact payments, declined.”
The Dollar was up sharply against major peers following the release of U.S. inflation numbers that were significantly stronger than expected.
The Pound could experience some heightened volatility against the U.S. Dollar on Tuesday as foreign exchange traders take a cue from U.S. inflation data.
Some reprieve for the British Pound against its U.S. counterpart after the release of the monthly U.S. jobs report provided traders with some rare summertime volatility.
The U.S. Dollar recorded a 2.0% advance against the British Pound in the month of June and how the coming days and weeks play out for the U.S. currency could well depend on the July 02 jobs report.
The Dollar holds gains ahead of the Friday release of U.S. jobs data which is likely to be the most important economic reading of some time, with analysts warning that disappointment could lead to a sizeable retreat by the U.S. currency.
U.S. Producer Price Index (PPI) inflation is rising, but not by quite enough to trigger a fresh bout of Dollar buying.
Those wanting a stronger Dollar were left disappointed by a tepid FX market response to data showing U.S. inflation is starting to burn hot.
The stars are aligning for Wednesday's U.S. inflation data release to be the most consequential for the Dollar and global markets in years.
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