USD is climbing to a 13-month high ahead of US inflation data

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USD jumped on Friday to a 13-month high against a basket of global currencies, continuing its strong gains for the second day in a row for the third consecutive weekly gain, as the world’s most powerful currency, especially the euro and British pound , And against most of the currencies of the emerging economies Turkey and India, this comes ahead of the release of important data on the major US inflation levels in July, which provides new evidence about the possibility of raising US interest rates two more times this year.

USD index rose more than 0.4% to 11:59 GMT, trading at 95.88 points, the opening level of 95.46 points, the highest at 96.02 points since July 6, 2017 and the lowest at 95.37 points.

The index ended yesterday’s trading up 0.5%, the first gain in three days, with renewed purchases of the US currency on a large scale against most of the major currencies and secondary.

Over the course of the week, USD index so far rose by 0.9%, the third consecutive weekly gain, as the world’s most powerful currency continues to buy, supported by strong prospects for the Federal Reserve to raise interest rates two more times this year.

The acceleration of dollar purchases at the moment comes at the expense of the weak currencies in Europe euro and pound sterling, against the currencies of emerging economies Turkey and India.

Euro fell sharply after the European Central Bank (ECB) said risks to growth were on the rise, especially those related to the global trade dispute, and the bank was worried about the collapse of the Turkish lira and its negative impact on European banks.

British pound fell to its lowest level in 14 months, as concerns over the UK’s secession from the EU continue without a final deal on trade, especially after comments by British Trade Secretary William Fox that the prospect of his country leaving the European Union without reaching a deal of 60%.

The Turkish lira has continued its sharp decline in global markets to record a new low against the US dollar, amid a deepening dispute between Turkey and the United States during the current period.

Investors will be looking ahead to important US data on key consumer price inflation levels in July, which provides new evidence of the possibility of a two-time hike in US interest rates this year.

By 12:30 GMT the consumer price index is forecast to rise by 3.0% YoY in July from 2.9% in June and the expected monthly reading of 0.2% from 0.1% in the previous reading.

 

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