The US dollar demonstrated an impressive rally during the past trading week. The currency continued to get support from the outlook for monetary tightening from the Federal Reserve and positive macroeconomic data.
The Fed released minutes of its September policy meeting on Wednesday, showing that hawks were becoming more courageous while doves had become more open to an idea of an interest rate hike in the near future. This increased investors’ confidence that the Fed is going to hike rates in December.
Macroeconomic data released from the United States on Friday added to bullish factors for the dollar. While reports were a bit mixed, with the consumer confidence demonstrating an unexpected decline, traders preferred to pay more attention to positive indicators, like rising retail sales the better-than-expected Producer Price Index.
Next week, several important US reports will be released. Perhaps the most important of them will be consumer prices data. Forecasters predict that it will show slight acceleration of consumer inflation.
EUR/USD sank 1.9% from 1.1177 to 1.0970, demonstrating the biggest weekly decline since June. GBP/USD slid 1.7% from 1.2390 to 1.2183. USD/JPY rallied from 103.26 to 104.15.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
