Arabictrader.com – The end of this week’s trading witnessed a significant rise in the US dollar, continuing its gains for the third consecutive day, despite the negative data of the preliminary reading of the Consumer Confidence Index issued by the University of Michigan earlier today, which showed that the index recorded only about 57.7 points, and the reading was Prior to September, it recorded about 63.5 points, which indicates a decline in consumer spending, which reinforces the decline in inflation, which would have negatively affected the dollar’s movements.
Looking at trading on Friday, we notice that the US dollar index, which measures the performance of the US currency against other major currencies, recorded an increase of about 0.61%, to settle near the level of 102.685 points.
As for the dollar’s weekly performance, the US dollar rose clearly during today’s trading, and is heading towards recording strong weekly gains; The gains of the US dollar over the past five sessions, so far, amounted to about 1.50%.
However, the dollar benefited from other factors that contributed to strengthening its bullish path, the most important of which are the following:
h2 Statements of the American Federalist/h2
The statements of the policy maker at the US Federal Reserve, Michelle Bowman, contributed to strengthening the bullish momentum of the dollar’s trading, as her statements touched on the possibility that the US Federal Reserve would be forced to continue its tightening approach in conjunction with high inflation, explaining that interest rates should be maintained at sufficiently restricted levels for some time. To reduce inflation to the bank’s target of 2%, which boosted the demand for the dollar in today’s transactions, in response to the possibility that the US Federal Reserve will not cut interest this year.
h2 Increased risks and economic turmoil /h2
The dollar received strong support from its role as a safe haven, as some developments related to the issue of the debt ceiling in the United States contributed to strengthening the demand for the US dollar, especially with the succession of international warnings, the latest of which was the World Bank, about the repercussions of the failure of politicians in the United States to find effective solutions to the issue of the debt ceiling on The global economy, not just the US economy.
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In this regard, it is worth saying that the CEO of the World Bank warned that the United States defaulting on its debt will increase the problems facing the already fragile global economy, with high interest rates and worsening debt levels that limit the investments necessary to increase production, which supported investors’ appetite for the dollar as a precaution. of possible economic crises.
h2 rebound in US bond yields /h2
The rebound in US bond yields in today’s trading provided additional support for the dollar’s movements, as the US 10-year bond yield rose by 0.88%, to settle near 3.427 points. The Reuters survey also expected a further strong rise in US bond yields during the next month, adding an upward momentum to US dollar trading. .
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