What To Expect From the U.S. Dollar This Week?

us dollar bill brics


The currency market is geared up for a string of developments this week that challenges the U.S. dollar’s prospects. The foreign exchange market depends on the performance of the U.S. dollar which can make or break the local currencies.

This week is interesting for the U.S. dollar and other leading currencies as several developments are on the cards. The DXY index, which measures the performance of the USD shows the currency trading at 105.2 at the start of this week.

Also Read: 3 Copper Mining Stocks To Benefit From Demand

Currency Markets: How Will the U.S. Dollar Perform This Week?

Source: iStock

The currency market and the U.S. dollar are on a live wire this week as the inflation data takes the spotlight. The Consumer Price Index (CPI) data, commonly called the inflation data will be published today on May 13.

Also Read: US Stock Market Will Face a 30% Correction: Forecast

If the inflation increases, the U.S. dollar will be the first to be affected in the currency markets this week. The development gives leeway to other leading local currencies to surge against the USD.

The U.S. jobs data released last week dampened the prospects of the dollar in the currency markets. Employers created less than expected jobs last month making the USD shed its gains. The number of jobs created in the U.S. stood at 173,000 in March and is below the expectations of 245,000.

Also Read: U.S. Millionaire Says Gold Prices ‘Will Go Very High’

Therefore, the U.S. dollar remains at risk of falling below the 104.9 mark if the CPI data turns negative this week. The U.S. dollar had peaked against all leading local currencies last month and might see a reverse.

“For the wheels to truly fall off of the U.S. dollar, incoming data needs to point to disinflation, not just pockets of weakness here and there. If inflation data ticks higher again this month it will surely undo the work of softer growth and slightly weaker employment figures,” said Matt Simpson, Senior Market Analyst at City Index to Reuters.



This article was originally published by a watcher.guru

Read it HERE

Share

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *