Support Comes from US Data, Pumping the Trading Price of the USD

The US dollar’s price surged significantly on Thursday. The investors were glad to see that the price of the dollar had surged significantly against its peers on that particular day.

This happened because of the revelation of the recent US data that was quite promising for the dollar.

Labor Market Data was Promising

The labor market data for the United States was recently shared by the US Federal Reserve. The data was extremely promising as it showed that the statistics had gained a lot of strength.

As a result of the strong data, the investors started talking about the action that the Feds may take regarding the interest rates.

Even now, it is being discussed which direction the Feds would pick in terms of the interest rate hikes.

Groups have been formed among the investors where one group is supporting the hawkish while the other one supports the cooling of the interest rates.

Given the current data that has been shared by the Feds, many investors are hoping that the Feds would remain hawkish against the interest rates.

This means the Feds would continue increasing the interest rates that would continue pushing the trading price of the dollar.

With more strength, the dollar will be able to compete with the major currencies in the global economy.

In recent events, the value of the Japanese yen, the Chinese yuan, and the Russian rouble has gained a lot of strength.

For Japan, it is the change in the policy made by the Bank of Japan that has resulted in the yen growing in strength.

As for the Chinese and Russia, they have started performing most of their trades with the yen and rouble. They are trying to bring down the value of the dollar.

Therefore, by remaining hawkish, the dollar will be able to stay away from the trouble of losing its spot as the largest reserve currency.

Unemployment Benefits are Rising

The data shared by the Feds for the labor market show that the number of claims has been rising to acquire unemployment benefits. The report shows that the number has increased compared to the past week.

It goes to show that the labor market is still not out of the friction and tightening. As for the third quarter, the economy was witnessing a better rebound compared to the recent quarter.

It is being speculated by the investors that the Feds may go with increasing the interest rates by 75 bps in the next implementation.

This would mean that the trading price of the dollar would rise as the interest rates keep growing higher.

Major Currencies against the Dollar

Following the increase, most of the major currencies have lost their strength against the dollar. The report shows that the trading price of the euro has dipped 0.15% against the USD.

After experiencing a 0.15% dip, the value of the euro has dipped to $1.05905 against the dollar. When it comes to the yen, it has remained flat against the dollar in the recent trading session.

The data shows that the value of the yen has remained at 132.49 yen against the dollar. Although the yen has shown no movement, it is still not far from hitting the 130.58 yen mark, which is a four-month low.

The value of the dollar has also grown stronger versus the sterling in the recent session. The data shows that on that particular day, the value of the sterling lost 0.44% of its value against the dollar.

As a result, the value of the sterling has moved down to $1.20315 against the dollar. This happened as the economy of the United Kingdom experienced a contraction higher than expected.

Quite surprisingly, the value of the dollar has dipped against the value of the rouble. The data shows that the value of the dollar has dipped 2.9% versus the rouble.

However, the value of the dollar managed to achieve a 1-week high value against the yuan.