Fund

Dollar Edges Lower; Michigan Sentiment in Focus



© Reuters.

By Peter Nurse

Investing.com – The dollar edged lower in early European trade Friday, but remained near a three-week high after strong U.S. economic data shifted tapering expectations ahead of next week’s Federal Reserve meeting.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 92.843, just below Thursday’s three-week high of 92.965.

rose 0.2% to 109.88, climbed 0.1% to 1.1772, bouncing off Thursday’s three-week low of 1.1750, while the risk sensitive rose 0.2% to 0.7307.

The dollar received a boost on Thursday after U.S. unexpectedly increased in August, rising 0.7% from the previous month despite expectations of a 0.8% fall. This came as a surprise as markets had expected the Covid-19 delta variant to have severely hit consumption. 

U.S. economic data Friday centers around the release of University of Michigan’s , which surprised many investors last month by tumbling to a decade-low.

Traders are now fully focussed on next week’s Federal Reserve meeting amid uncertainty over whether this data will be enough to prompt the central bank to announce a timeline for asset tapering after a tame consumer inflation reading and soft job growth data earlier this month.

“It seems unlikely investors will want to build momentum behind any fresh trends in the dollar until the Sep 22nd FOMC event risk has passed,” said ING analysts, in a note.

Elsewhere, edged higher to 1.3794 despite U.K. falling unexpectedly for a fourth month, dropping 0.9% on the month in August and suggesting that a resurgence of coronavirus cases is taking a toll on confidence.

See also  Exclusive: CVC seeks up to 20 billion euros for new buyout fund - sources

fell 0.1% to 6.4517 after the People’s Bank of China injected short-term funds into the banking system to try and soothe frayed nerves over the country’s real estate sector with all eyes on China Evergrande Group and its coupon payment due next week. 

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.