The dollar appreciated on Wednesday as the US currency resumed its powerful uptrend. The greenbackâs gains followed the release of a report by the Department of Commerce, which showed an increase in durable goods orders that is bigger than estimated.
The report said that orders for durable goods, such as appliances, made in the USA rose by 4.8% in October from 0.4% in September, compared to an estimated 3.3% increase. The increase was attributed in a big part to higher demand for commercial aircraft.
Following the data, investorsâ confidence that the economic growth is on a steady and stable track was boosted. While their expectations of a decision by the Federal Open Market Committee to raise interest rates in December rose to 98.2%, according to the CME Group FedWatch tool.
A stream of strong data and signals of an improving inflation rate increased the number of interest rate increases expected by investors. Thereâs now a strong belief that the US central bank might follow Decemberâs rate hike by more hikes in 2017 to accommodate for rising inflation and increased fiscal spending under the administration of President-elect Donald Trump.
The US Department of Labor also released its report for initial jobless claims today, showing a seasonally adjusted level at 251,000 in the week ending November 19, from a revised level in the previous week at 233,000. This completes 90 straight weeks of initial claims under 300,000, which is the longest streak since 1970, according to the report.
EUR/USD was at 1.0555 as of 18:27 GMT today, after touching 1 .0525 at 15:31 GMT, its lowest level for the day. The pair closed on Tuesday at 1.0624.
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