Dollar Rose Ahead of The Release of Key Economic Data
The U.S. dollar surged on Tuesday, recovering from a one-month low. Still, gains are small ahead of the key economic data and next week’s Fed meeting.
The U.S.Dollar Index, which measures the currency against its rivals, rose 0.1% at 93.882, rising just above Monday’s one-month low.
The dollar against the safe-haven Japanese yen gained 0.2% at 113.91. The rise came after Japan’s PPI for September increased 0.9% year-on-year. Meanwhile, the euro against the greenback was down, sitting at 1.1604. The British pound declined versus the dollar to 1.3767.
The risk-sensitive currency, the Australian dollar, increased 0.3% to 0.7511.
The U.S. dollar was harmed late last week following comments by Fed Chair Jerome Powell saying that it’s not yet time to start raising U.S. interest rates.
The Federal Reserve has now gone into a blackout period ahead of next week’s policy-setting meeting. Remarkably, the central bank is likely to confirm the start of the withdrawal of its bond-buying stimulus.
The market is now waiting for the U.S. data this week, including new home sales for September and October CB consumer confidence numbers. However, it is the third quarter GDP release on Thursday. The September core PCE deflator should come on Friday.
The Market Focuses on Central Bank’s Meetings Due Next Days/Weeks
The Bank of Canada meets on October 27, while the Bank of Japan and European Central Bank meetings are on October 28. Next week, the Reserve Bank of Australia meets on Tuesday, the U.S. Federal Reserve on Wednesday, and the Bank of England and Norges Bank meet on Thursday.
Moreover, the U.S. dollar against the Turkish Lira dropped 0.1% to 9.5701. The decline came after President Tayyip Erdogan rowed back from his demand that 10 Western ambassadors be expelled from Turkey over criticism of the jailing of a government critic that had shaken the currency.
The Turkish currency has recovered in response, after dropping to record lows versus the greenback on Monday.
Elsewhere, the dollar against the Chinese yuan dropped 0.1% to settle at 6.3819 after China’s central bank injected a net 190 billion yuan ($30 billion) into the financial system. This resulted in the overnight interbank repo rate declining as much as eight basis points to 1.53%, the lowest since September 29 and close to a nine-month low.
The largest cryptocurrency in the world, Bitcoin, is down about 0.6% at $62,742.65. It dropped below the lifetime high of $67,016.50 it hit last week.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.