US Dollar Index Poised for Weekly Gain
The US dollar was relatively unchanged against a basket of its major peers, but was still poised for a weekly gain of more than half a percent as of Thursday’s afternoon session.
The US dollar index, which tracks the greenback’s performance against six of its major peers, was at 79.83. US data throughout this shortened week were generally positive, as retail sales, consumer price inflation and industrial production figures beat forecasts.
Looking ahead to next week, forex traders will weigh a spate of US economic data, including previously-owned home sales, durable goods orders and PMI.
The world’s most actively traded currency has been underwhelming as of late. Investors eagerly bought the greenback last month after the Federal Reserve announced plans to reign in record stimulus this year and introduce a rate hike sometime in 2015. The rally was short-lived, as investors were unable to affirm the US economy was regaining momentum after the weather-induced slowdown.
Several weeks later, US data have improved, although doubts about the economy’s growth momentum persist. Concerns about US growth helped push the Australian dollar to its highest level this year. US dollar weakness also helped to bolster the euro, which continues to trade north of 1.38.
In Thursday’s afternoon session, the AUDUSD pair was down 40 pips at 0.9329. The Aussie is on its way to a weekly loss of more than half a percent. Year-to-date, the Aussie is up more than 5 percent. The EURUSD pair was relatively unchanged at 1.3817.
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