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!
Greenback retreats from 11-month maximum
On Friday, the evergreen buck drifted away from a 11-month maximum against the group of its key rivals due to the fact that market participants recorded gains after the greenback’s leap. At the same time the UK currency grew from a 7-month low because the Bank of England's slope toward hawkish monetary stance shocked the financial markets.
The production index of the Federal Reserve Bank of Philadelphia went down steeply to a 1.5-year low that turned out to be a reason for worries about the state of the world's number one economy. It made some market participants record gains on the growth of the greenback.
In June, the index of the business climate of the Federal Reserve Bank of Philadelphia slumped to a plus of 19.9 points, while in May it dived to plus 34.4 points. The given dive happened to be the peak since January 2014.
The USD index, gauging the evergreen buck’s purchasing potential against its six main counterparts, dipped by 0.04% hitting 94,705. By the way, the day before it hit the mark of 95.533 - the highest value since last July.
As for the common currency, the day before it rallied from the 11-month minimum of $1,1508 and gained 0.23% showing $1.1627.
The evergreen buck was intact versus the Japanese yen, keeping to 109.97 yen, drifting away from the weekly maximum of 110.76, hit the day before.
The UK currency managed to ascend by 0.23% being worth $1.3277.
During the previous trading session, the UK currency rallied 0.7% after the Bank of England major economist Andy Haldane suddenly joined a minority calling for a rate lift to 0.75%, thus backing market expectations of an early tightening of monetary policy.
Meanwhile, the Canadian dollar soared by 0.17% reaching C$ 1.3294 having dived to another one-year minimum of C$1.3336 yesterday.
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