The value of the US dollar has bounced back following a slight decline. Despite mixed economic signals and uncertain global markets, USD stayed resilient. The Australian dollar is the strongest competitor, with expected inflation rate of 4.8%
On Friday, November 17, the US Dollar (USD) Index recovered from its Tuesday decline following soft US inflation data. The upcoming US economic docket includes weekly Initial Jobless Claims, Philadelphia Fed Manufacturing Survey, and October Industrial Production data.
Federal Reserve (Fed) policymakers Loretta Mester, John Williams, and Governor Lisa Cook are scheduled to speak, along with European Central Bank President Christine Lagarde at the Annual European Systemic Risk Board Online Conference.
Wednesday’s US data showed Retail Sales declining less than expected in October, while producer inflation continued to slow. Despite mixed data, Wall Street’s main indexes closed flat, and the USD remained strong against major rivals.
The US Dollar showed mixed results against major currencies this week, with the Australian Dollar emerging as the strongest performer. The USD weakened against the AUD but gained against the EUR, GBP, CAD, JPY, NZD, and CHF in percentage change terms.
During Asian trading hours, Australia reported an increase in the Unemployment Rate to 3.7% in October, a rise in the Participation Rate to 67%, and a positive Employment Change of +55,000, surpassing market expectations. Consumer Inflation Expectations in Australia edged up to 4.9% in November from 4.8%.
In currency pairs, EUR/USD faced resistance below 1.0900 and experienced minor losses on Wednesday. On Thursday, the pair fluctuates within a tight range around 1.0850. GBP/USD, after surpassing 1.2500, underwent a technical correction on Wednesday and continued its descent below 1.2400 early Thursday. USD/JPY, gaining nearly 100 pips on Wednesday, settled above 151.00, fluctuating slightly below 151.50 on Thursday.
Gold struggled to sustain its bullish momentum as the 10-year US Treasury bond yield rebounded towards 4.5%. XAU/USD, after a flat close on Wednesday, began to rise towards $1,970 early Thursday.
In conclusion, the USD exhibits resilience amid economic data fluctuations. The varied performance against major currencies, coupled with global economic indicators, underscores the need for continued monitoring as uncertainties persist.
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