Dollar extends gains to a 23-month high

The US dollar rose in the European market against a basket of global currencies on Thursday, extending its gains for a third straight day, reaching a 23-month high as the US currency purchases continue to accelerate as the best current investment in the foreign exchange market. This comes ahead of important US economic data on durable goods orders in March and weekly jobless claims.

The dollar index rose by 0.2% to 98.02 points which is the highest since the 16th of May, 2017, from the opening at 97.83 points, with a low of 97.70 points.

The index ended yesterday's trading up by 0.6%, in the second daily gain in a row, with continued strong demand for the purchases of the US currency against most of the world currencies.

The rise in the US currency as US dollar purchases continue to be the best current investment in the foreign exchange market, especially during the negative pressures facing the major and minor currencies, as most of the global central banks are moving to expand flexible monetary policies to cope with the economic slowdown.

In Europe, the ECB announced during its recent meetings that it postponed its plans to raise the interest rates during the year, and provided some incentive measures to counter the decline of the economic activities in the old continent. And in Canada, Australia and New Zealand, central banks may reduce interest rates this year to support the economy, facing the internal and external challenges.

Investors are looking for important economic data from the US on durable goods orders later today, it's one of the most important indicators of measuring investment spending in the country. Investment spending accounts for more than 16% of GDP and weekly jobless claims.

Durable Goods orders are expected to rise by 0.7% in March from a 1.6% drop in February, excluding the expected transportation items rising 0.2% from a 0.1% drop the previous month.

Jobless claims for the week ending April 20th are expected at 199,000, and the previous reading recorded was 192,000, the lowest reading since 1969.