Dollar rise amid optimism in economy-Budrigantrade review
Budrigantrade.com - On Friday, expectations that economic growth would accelerate in the second quarter were bolstered by upbeat retail sales data, which put the dollar on track for a weekly gain.
At 92.718, the dollar index, which compares the dollar to a basket of six currencies, was 0.157 percent higher. This week, the index is expected to rise by 0.6%, its highest weekly gain in about a month.
Despite spending shifting back to services, U.S. retail sales unexpectedly increased in June as demand for goods remained strong.
In recent weeks, positive U.S. data and a shift in interest rate expectations following the Federal Reserve's June warning of earlier than anticipated hikes in 2023 have contributed to the dollar's recent rise and prompted investors to be wary about shorting it.
Even though Fed Chair Jerome Powell reiterated on Thursday that rising inflation was likely to be temporary and that the U.S. central bank would continue to support the economy, the dollar gained on Friday.
Western Union senior market analyst Joe Manimbo stated, "The data was consistent with the economy making substantial strides and cements expectations of very robust second quarter growth of around 10%." Washington's WU) Business Solutions.
Manimbo stated, "Against the backdrop of rising inflation, falling unemployment, and a resilient consumer, a compelling case for the Fed to unwind stimulus."
Sterling edged lower against the dollar, heading for its worst week in a month, as investors sought safety in the greenback amid concerns over rising COVID-19 cases worldwide. Data showing that New Zealand's consumer prices rose much faster than anticipated prompted some in the market to bet on a rate hike as soon as August.
A day after dipping to a level that was nearly three months lower than its counterpart in the United States, the Canadian dollar gained 0.1 percent against the U.S. currency on Friday, helped along by encouraging data on domestic wholesale trade.
After recent turmoil, cryptocurrency prices stabilized, with bitcoin remaining roughly flat at $31,835.59.
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