Dollar jumps to 1-week high ahead of US inflation data

2019-09-12 13:07:28 GMT (Economies.com)
Dollar jumps to 1-week high ahead of US inflation data

US dollar rose against a basket of currencies today, to continue rising to a 1-week high, after the ECB's announcement of new stimulus measures to support the european economy, and ahead of the release of key US data on inflation and Mario Draghi's speech.

 

The dollar index rose by 0.3% to 98.94 points, from the opening of 98.63, with a low of  98.38 points.

 

Dollar rose by 0.3% yesterday, its second daily gain which came after the US 10-year treasury yields jumping to 1-month high.

 

Otherwise, Euro fell against dollar after the European Central Bank announced its monetary policy decisions at the end of the September 12th meeting, which included new stimulus measures to support the eurozone economy in the face of increased risks.

 

The bank announced a 10bp cut in deposit rates to minus 0.5%, in line with forecasts, and kept the interest rate unchanged at 0%.

 

The bank also announced a new bond-buying program of about 20 billion euros per month, whenever necessary for the European economy, while the bank's Chairman, Mario Draghi, will comment on the program in his speech later today by 12:30 GMT.

 

Investors are also anticipating the release of US inflation data for August, which provides strong evidence on the possibility of the US Fed's rates cuts for this year for the second time at the next week's meeting.

 

By 12:30 GMT, the US annual CPI is expected to rise by 1.8% in August, unchanged from the previous reading, and the monthly reading is expected to rise by 0.1% vs, 0.3% in July.

 
 
 
  Symbol Last Change Chg.%
1.1020
0.0000
0.0045%
1.2472
0.0003
0.0236%
17.964
0.513
2.940%
58.477
3.583
6.527%
64.28
-0.12
0.19%
1516.410
27.430
1.842%
 
 
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