Wed, July 24, 2024

The Dollar Regains Value, Will the Uptrend Continue?


As investors analyzed conflicting U.S. economic statistics on Thursday, the dollar advanced, while the British pound reversed course and fell ahead of the government’s budget statement.

The dollar’s value has fallen in recent weeks as inflation statistics, and remarks from Federal Reserve officials have raised hopes that the central bank would soon be able to decrease the rate at which it raises punitive interest rates. But the dollar strengthened on Thursday after strong U.S. retail sales figures for October became public on Wednesday.

After reaching its highest level since July on Tuesday at $1.048, the euro was down 0.33% against the dollar at $1.036 at 10:45 GMT. The dollar index, which compares the dollar to six important counterparts, increased 0.32% to 106.62. Despite dropping more than 6% since reaching a 20-year high in September, the index was still 11% higher than last year on Thursday.

Here Is What Experts Predict

The U.S. retail sales numbers sharply contradict the Fed’s expected turn, according to Kim Mundy, a currency strategist at Commonwealth Bank of Australia (OTC: CMWAY). According to Simon Harvey, senior FX analyst at Monex Europe, the dollar is stabilizing as traders attempt to predict how the American economy will develop. The favorable consumption report shows that the economy won’t have a harsh landing, but will this be good for risk assets, or will it encourage the Fed to tighten policy?

Harvey predicted that when finance minister Jeremy Hunt releases the government’s budget proposals later on Thursday, the British pound may experience the most price movement. To improve Britain’s standing with markets and control inflation, he is anticipated to increase taxes and slash expenditure despite an impending recession.

After increasing earlier in the day, the value of the sterling versus the dollar fell by 0.35% to $1.187. Concerning the euro, it was nearly flat. On Thursday, traders will closely watch remarks from several Fed officials for cues regarding rate increases. Raphael Bostic, Loretta Mester, and Neel Kashkari, the regional Fed presidents, are all scheduled to speak.


The Greenback: A pile of Canadian dollar bills.

Quick Look: Oil Prices Impact: The slump in crude oil prices weakens

Treasury stock

Quick Look: The S&P 500 and Dow Jones slipped by ~0.2% and


Quick Look: Ether ETFs launched with over $1 billion in trading volume


Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
  • Platform
  • Spreads
  • Trading Instument