FOREX TradingCharts.com

Forex News: Last Week's Weak Show By The Dollar

Last Week's Weak Show By The Dollar

01/16/2024 - 08:09:00 (RTTNews)

(RTTNews) - The U.S. Dollar recorded a mixed performance in the week spanning January 8 to 12, weakening against the euro and the British Pound but gaining against the Australian Dollar and the Japanese Yen. The Dollar Index, a measure of the Dollar's relative strength edged lower during the week.

The Dollar Index, a measure of the Dollar's strength against a basket of 6 currencies closed the week ended January 12 at 102.40, versus 102.41 a week earlier amidst a slower-than-expected progress towards disinflation. The Index climbed from the low of 102.07 and touched on Monday a high of 102.76 on Thursday, the day the CPI readings for December released.

Data released by the U.S. Bureau of Labor statistics showed annual headline inflation rising more than expected to 3.4 percent. Markets had expected the same to increase to 3.2 percent from 3.1 percent in the previous month. The core component thereof, which was seen falling to 3.8 percent from 4 percent in the previous month, dropped less than expected to 3.9 percent. On a monthly basis, headline inflation increased to 0.3 percent, from 0.1 percent earlier and expectations of 0.2 percent. The core component was however steady at 0.3 percent as expected.

The uptick in consumer price inflation or the safe-haven demand caused by rising tensions in the Middle East did not suffice to power the dollar higher, causing the index to edge down to 102.40 by the end of the week. An unexpected decline in producer price inflation, lingering rate cut hopes, and the easing in U.S. ten-year bond yields to 3.939 percent from 4.051 percent a week earlier, all abetted the greenback's weakness.

The EUR/USD pair edged up 0.07 percent during the week ended January 12 despite dovish hints by ECB officials. From the level of 1.0941 on January 5, the pair increased to 1.0949 in a week's time. The week's trading ranged between 1.0910 touched on Tuesday and 1.0991 recorded on Thursday.

The sterling's gains against the greenback were more pronounced at 0.28 percent. The GBP/USD pair ranged between Monday's low of 1.2672 and Friday's high of 1.2787. The pair eventually closed at 1.2751 versus 1.2716 a week earlier amidst data that showed U.K.'s economy grew slightly more than expected in November.

The AUD/USD pair weakened 0.42 percent during the week ended January 12, dropping to 0.6685 from 0.6713 a week earlier. The pair recorded the week's high of 0.6736 on Tuesday and the week's low of 0.6647 on Thursday. The currency movement comes amidst largest trading partner China's trade data release on Thursday that showed a less-than-expected decline in imports and a more-than-expected jump in exports. A bigger-than-expect jump in Australia's trade surplus however limited losses.

The yen's weakness lifted the USD/JPY pair by 0.17 percent, to 144.90, from 144.65 a week earlier. However, the pair's weekly trading range was much wider, between the low of 143.42 on Tuesday and 146.43 on Thursday. The yen's weakness came amidst fears over whether Bank of Japan would delay an end to its negative interest rates policy amidst increased stimulus measures that followed the devastating earthquake.

Several economic data releases are scheduled for release in the ensuing week, ranging from GDP and Industrial production updates from China, inflation readings from U.K. and Japan, as well as the retail sales reading from the U.K. and the U.S. Meanwhile, rising risk aversion and anxiety about likely delay in rate cuts have lifted the Dollar Index to 103.17. The EUR/USD pair has decreased to 1.0892, whereas the GBP/USD pair is at 1.2643. The AUD/USD pair is hovering close to 0.66. The USD/JPY pair is currently trading at 146.63, ahead of the Bank of Japan's interest rate decision that would be known late on Monday.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2024 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


U.S. Dollar Lower Against Most Majors (02 hr(s), 05 min(s), 20 sec(s) ago)
(RTTNews) - The U.S. dollar was subdued on Friday, as investors continued to cheer strong quarterl ...Full Story»

Commodity Currencies Rise On Higher Oil Prices (10 hr(s), 08 min(s), 20 sec(s) ago)
(RTTNews) - Commodity currencies such as the Australia, the New Zealand and the Canadian dollars s ...Full Story»

Canadian Dollar Advances Against Most Majors (11 hr(s), 17 min(s), 20 sec(s) ago)
(RTTNews) - The Canadian dollar strengthened against most major currencies in the Asian session on ...Full Story»

NZ Dollar Rises Against Most Majors (11 hr(s), 29 min(s), 20 sec(s) ago)
(RTTNews) - The New Zealand dollar strengthened against most major currencies in the Asian session ...Full Story»

Australian Dollar Rises Against Majors (11 hr(s), 41 min(s), 20 sec(s) ago)
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session ...Full Story»

U.S. Dollar Firms As Jobless Claims Fall Unexpectedly (01 hr(s), 20 min(s), 20 sec(s) ago)
(RTTNews) - The U.S. dollar climbed against its major counterparts in the New York session on Thur ...Full Story»

Pound Rises Against Majors (07 hr(s), 53 min(s), 20 sec(s) ago)
(RTTNews) - The British pound strengthened against other major currencies in the Asian session on ...Full Story»

U.S. Dollar Slides As European Shares Traded Higher (09 hr(s), 14 min(s), 20 sec(s) ago)
(RTTNews) - The U.S. dollar weakened against other major currencies in the European session on Thu ...Full Story»

Search

FOREX NEWS

U.S. Dollar Lower Against Most Majors

02/23/2024 - 11:30 AM (RTTNews)
(RTTNews) - The U.S. dollar was subdued on Friday, as investors continued to cheer strong quarterl ...Full Story>>

Commodity Currencies Rise On Higher Oil Prices

02/23/2024 - 03:29 AM (RTTNews)
(RTTNews) - Commodity currencies such as the Australia, the New Zealand and the Canadian dollars s ...Full Story>>

Canadian Dollar Advances Against Most Majors

02/23/2024 - 02:20 AM (RTTNews)
(RTTNews) - The Canadian dollar strengthened against most major currencies in the Asian session on ...Full Story>>

NZ Dollar Rises Against Most Majors

02/23/2024 - 02:08 AM (RTTNews)
(RTTNews) - The New Zealand dollar strengthened against most major currencies in the Asian session ...Full Story>>

Australian Dollar Rises Against Majors

02/23/2024 - 01:56 AM (RTTNews)
(RTTNews) - The Australian dollar strengthened against other major currencies in the Asian session ...Full Story>>

Do not sell my personal information

Copyright © 2024. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.