A package of US data has pushed the dollar index contracts higher, as this data affects in one way or another the upcoming monetary policy decisions of the US Federal Reserve.
At 15:40 Riyadh time, the dollar index, which measures the greenback against a basket of six other currencies, was trading 0.5% higher at 102.882.
Read also:Dollar falls against the Egyptian pound at an important low
Retail sales and unemployment benefits data
New government jobless claims last week recorded 227,000 applications, according to U.S. Department of Labor data. Experts expected 236,000 to be recorded. The reading for the week before last recorded 234,000 revised requests.
Thus, the average jobless claims in 4 weeks recorded to 236.50 thousand, after recording the previous reading of 241 thousand after adjusted.
Meanwhile, the Philadelphia Manufacturing Index showed a negative reading of 7.0 points in August, below the positive estimate of 5.4 points, while the previous reading recorded a positive 13.9 points.
On the other hand, the US Commerce Department reported that retail sales rose 1% in July month-on-month, much larger than experts’ expectations of a 0.4% increase, according to Census Bureau data.
Sterling rises after growth data in United Kingdom
In Europe, the GBPUSD currency pair traded 0.2% higher at 1.2845, after data showed Britain’s economy grew by 0.6% in the second quarter of 2024, benefiting from a rapid recovery of 0.7% in the first quarter of the year.
The UK economy has grown slowly since the Covid-19 pandemic, expanding by just 2.3% between the fourth quarter of 2019 and the second quarter of 2024.
The Bank of England cut interest rates for the first time in more than four years at the beginning of August, but doubts remain over whether the central bank will agree to further rate cuts this year.
EURUSD traded marginally lower to 1.1011, but remained near the previous session’s high of 1.1047, its highest level this year.
The ECB also began cutting interest rates in June, and many expect policymakers to agree to another cut in September.
Yen stabilizes after GDP release
In Asia, the JPY/USD rose 0.1% to 147.43, with the yen steaking after GDP data showed Japan’s economy grew more than expected in the second quarter, supported by a rebound in private consumption as Japanese wages grow.
The reading is linked to Bank Japan’s forecast that improved wages will boost Japan’s economy, giving the central bank more room to continue raising interest rates this year.
{{2111|CN/USD}} rose 0.3% to 7.1587, with the yuan weakening as a range of readings provided a mixed picture of the Chinese economy.
China’s retail sales grew more than expected, suggesting some confidence in improving consumer spending and inflation.
But industrial production grew less than expected, as did investment in fixed assets. China’s unemployment rate index also unexpectedly rose to 4.2%.
The readings showed that while some policy measures from Beijing were helping with consumer spending, the macroeconomy remains under pressure.
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