Inflation data in the US indicated a slight decline this Tuesday, bringing down US dollars with it. However, over the course of Wednesday and early Thursday, the dollar has seen a recovery. As of right now, the US dollar index is around 104.40.
The upcoming data on Jobless Claims, manufacturing, and production will all have an effect on this soon enough.
More importantly, Fed policymakers will be making speeches today, including John Willians, Lisa Cook and Loretta Mester. Another event worth keeping an eye on will be occurring in Europe, where Christine Lagarde, President of the ECB, will be making certain remarks. This will obviously have an effect on the best dollar rate against the euro.
So far, data has shown that Retail Sales did not decline as far as analysts expected them to for October. Furthermore, inflation seems to be slowing down. Most stock indices moved sideways, with the dollar now being in a relatively stable position.
The dollar performed worst against the Australian dollar. The AUD/USD made a turn for the worse after several data points made some implications for Australia’s economy. Unemployment data showed a rise from 3.6% to 3.7% going into October. Consumer Inflation expectations went up to 4.9% from the previous 4.8% as well. You can now buy dollars for the US at 0.65 against the Australian dollar.
The EUR/USD pair met a new resistance point around 1.09, with minor losses this Wednesday. By this Thursday morning, the rate was around 1.085.
Meanwhile, the GBP/USD rate managed to climb over 1.25 briefly this Wednesday. However, the pair had a correction and fell down to around 1.24. This again indicates the minor correction on US dollars.
Finally, we can look at the USD/JPY pair. The pair managed to break above the 151 point. After some fluctuations, it now remains a little below 151.5, a slightly worrying point for the Japanese yen.
