Evergreen buck jumps notwithstanding dismal US economic data

Evergreen buck jumps notwithstanding dismal US economic data

On Friday, the evergreen buck flirted with session peaks versus a group of key currencies, neglecting generally dismal American data, which pointed to signs of an economic deceleration.

Assessing the US dollar’s purchasing power versus its main peers the USD index managed to edge up by up to 0.35% hitting 96.37, which is below session maximums of 96.44.

The evergreen buck was still resilient in the wake of reports on inflation, manufacturing, and consumption, which did little to quash the narrative of a deceleration American economy.

The personal consumption expenditures price index, which is the Fed’s preferred inflation gauge, rallied by up to 1.9% excluding energy and food for the 12 months through December, which is in line with experts’ estimate.

February’s ISM manufacturing data disclosed a downtick to 54.2, confounding hopes for 55.5. An outcome above 50 in the ISM index points to an expansion in manufacturing that amounts to nearly 12% of the American economy.

Consumer spending, accounting for more than two-thirds of American economic activity, headed south by 0.5% in December.

The dive in personal spending actually represented the greatest dive since 2009.

The dismal data showed up several days after Fed Chair Jerome Powell praised the strength of the American economy, although he flagged some headwinds to surge, such  as a weaker backdrop for the world’s economy.

The evergreen buck was also backed by a dive in the UK currency because investors took profits in the latter following steep profits during the week against the backdrop of soaring hopes that Great Britain will seek to postpone Brexit.

The currency pair GBP/USD went down by 0.40% reaching $1.3208. As for EUR/USD, it was intact sticking with $1.1370.

The currency pair UD/JPY rallied by 0.53% reaching Y111.97.

Similar

Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

Latest news

News for The Week
News for The Week

US stock markets started falling, while the US dollar is rising. What to expect from

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera