The US Dollar Reaches Its Highest Level in Two Weeks

The US dollar index managed to maintain the rising pace that it started at the end of the last week’s trading following the release of US labor market data during the month of July, which came in a very strong way better than the market expectations and pushed the US dollar to achieve strong gains during the day.

Although the US dollar index, which measures the currency’s performance against a basket of 6 major currencies, declined slightly this morning, moving away from its two-week high recorded during the Asian session today, reaching 92.92 levels, it managed during the last hour to stabilize at 92.77 levels again by achieving A slight increase of about 0.02%.

This strong rise in the US dollar’s movements came at the beginning of this week on the back of positive economic data released in the US during the past week and until the end of the week. The most important of these data was the US labor market indicators during the last month.

On the other hand, the decline in the US bond yields limited the US dollar index’s rise and recorded more gains, as the US 10-year bond yields reached 1.28% during the day. At the same time, the developments of the Coronavirus added pressure on the movements of the US dollar amid fears that infections will rise at a rate that will be difficult to control again.

This week, the markets are awaiting the release of more important economic data in the United States, and the beginning will be with inflation data, as market expectations indicate an increase in the consumer price index by about 0.5% last July, after it recorded 0.9% during the previous month, and that it The index is expected to rise by its basic value by 0.4%.

This will be followed by the release of US unemployment benefits and producer prices data in the US last July, and it is likely that these data will have a noticeable impact on the US dollar’s movements this week.