The US dollar rallied today as economic data release from the United States over the trading session was good so far, improving chances for an interest rate hike from the Federal Reserve in December.
Retail sales increased 0.6% in September, in line with expectations. The Producer Price Index rose 0.3%, a bit more than analysts had promised — 0.2%. Later during the session, reports about the consumer sentiment and business inventories will be released.
On Wednesday, the Federal Reserve released minutes of the September policy meeting, which turned out to be rather hawkish. They said:
Several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded about as the Committee expected.
Currently, the CME FedWatch page shows about 75% probability of a December hike.
EUR/USD dropped from 1.1054 to 1.1006 as of 12:57 GMT today. USD/JPY rallied from 103.68 to 104.34. GBP/USD was down from 1.2251 to 1.2167 intraday but has rebounded to 1.2198 as of now.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
