Dollar Price Moves Higher Versus The Euro, Promising Data From Germany Offers No HelpDecember 9, 2022
On Tuesday’s trading European session, the trading price of the dollar could be seen taking a higher course against the euro.
For the first time after several days, the trading price of the euro has taken a fall against the greenback. This could indicate the launch of a bearish trend in the trading price of the euro.
US Dollar is Performing Well
Toward the end of the previous trading session, the trading price of the dollar started to move upstream.
Then the next day, the trading price of the dollar continued to surge, a positive indication for the USD-bullish traders.
This happened right after the services data came out for the United States. The data was much stronger than the US Feds had expected in the first place.
The report has encouraged USD investors to grow confident that the US Feds may increase the interest rates in near future.
As the dollar moved higher, the trading price of the euro experienced a downtrend. The euro ended up slipping and even the positive data coming in from Germany was not able to save the euro.
Industrial Production Figures from Germany
The other day, Germany shared its figures for industrial production and the data was quite promising for the country’s economy.
Even after sharing positive data, the trading price of the euro was not able to pick up any momentum against the dollar.
This means that the sentiments of the bulls supporting the dollar are much higher than the sentiments of the bulls supporting the euro.
Dollar Index’s Performance
As the dollar edged higher, its index also demonstrated a strong performance versus the rest of the major currencies. The report shows that the US dollar index (DXY) has recorded a 0.1% surge.
This means that against the major currencies from around the world, the value of the dollar has experienced an average surge of 105.312.
On the other hand, the rally the USD recorded a day earlier was 0.7%. This was the largest rally that the USD recorded since November 21.
PMI Data was Beyond Expectations
It was in the running week when the non-manufacturing PMI data report was shared with the Institute of Supply Management.
The data shared amazed the entire investment industry as it showed that the services sector was hardly moved by the rising interest rates.
This has encouraged the investors to think that looking at the data, the Feds may go back on their strategy. They may decide to continue with the interest rate hikes with aggression.
This would eventually help the inflation rates to plummet faster than the Feds had expected in the first place.
The recent data share may work as a license for the Feds to continue hiking the interest rates. They will have an even higher chance of bringing down the inflation rates at a much faster level than before.
This would eventually kill any possibilities and fears of a recession ever coming to life.
Dollar’s Performance from the Last Week
In the past week, the trading price of the dollar was moving in negative territory. The overall dip that the trading price of the dollar recorded in the past week was 1.3%.
This happened right after the comments from Jerome Powell came out, the chair at the Federal Reserve in the United States.
He commented that given the current decline in the inflation rates, they can safely say that the interest rate hikes can be lowered.
He assured that the next stage of the interest rate hikes will not be as hawkish as the hikes in the past four months.
If the Feds keep on increasing the interest rates, the trading price of the dollar may surge significantly.
Performance of the USD
The current trading session results show that the value of the EUR/USD has fallen 0.1% while the value of the GPB/USD has surged 0.1%.
The value of the dollar has risen by 0.3% against the yen and it is currently trading at 137.19 per dollar.
The value of the Australian dollar has recorded a surge versus the dollar, going up by 0.4% and it currently trades at 0.6725.