The US Dollar Records The Third Daily Rise in a Row

The US dollar continued to rise during trading on Wednesday for the third consecutive day, after the strong decline that it recorded at the end of last week, on the back of negative economic data in the United States last August. The statements of the members of the US Federal Reserve on monetary policy measures reinforced the currency’s rise during the day, with the markets awaiting the awaited central bank decisions and the release of a number of important economic data in the United States this week.

During the day, the US dollar index, which measures the currency’s performance against a basket of major currencies, increased by 0.14%, and the index reached 92.65 levels during the last hour, up from 92.47 levels recorded at the beginning of trading today. The decline in US bond yields limited the USD to record further gains during the day.

The United States for 10 years lost a decline during today’s trading for the first time since 3 days of gains, and the US 10-year bond yields fell to 1.35%, down from 1.37%.

The statements of the US Federal Reserve member, James Bullard, during the early hours of this morning helped support the rise of the US dollar, as he indicated in his statements to the need to start reducing the US Federal Reserve’s purchases of bonds, to be completed during the first half of next year. , in preparation for further adjustment to the monetary policy tools of the bank, including raising the interest rate, which supported the rise of the US dollar.

The US dollar suffered strong losses during last week’s trading, especially on Friday, following the release of US labor market data. The economic data released in the United States during the past week, specifically the labor market data, revealed that the American economy did not recover from the repercussions of the Coronavirus, especially after the outbreak of the delta mutant. This weak data pushed the US dollar index to decline strongly.

In today’s and tomorrow’s trading, attention is directed to the meetings of the central banks, the Bank of Canada and the European Central Bank, in preparation for the US Federal Reserve meeting next week. Central banks are scheduled to announce interest decisions amid expectations to keep interest rates unchanged, but expectations indicate the possibility of hinting at adjusting monetary policy tools soon.

At the same time, the markets are awaiting the release of important economic data in the United States during trading on Thursday and Friday, led by the US unemployment benefits index data during the last week, which is one of the indicators on the labor market data. This will be followed on Friday by the release of producer price data during last August, which is an indicator of the inflation rate in the United States.