USD is making its second consecutive weekly gain

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USD rose on Friday against a basket of global currencies to resume yesterday’s pause, approaching once again the two-month high, for the second consecutive weekly gain, supporting greenback purchases as the best current investment in the currency market. And risk appetite in financial markets as the United States and China approach a comprehensive trade agreement.

USD index rose more than 0.1% to the level of 96.99 points, the opening level of trading today at 96.86 points, and the lowest level at 96.83 points.

Yesterday, USD index lost 0.1% on correction and profit taking after hitting a two-month high of 97.10 points earlier in the session and under pressure from weak US economic data.


Data showed US retail sales fell last December at the lowest pace since September 2009, raising concerns about the robustness of the growth path of the world’s largest economy.

Over the course of the week, the dollar index soared by more than 0.6%, achieving the second consecutive weekly gain, reversing the continued buying of the US currency against most major and secondary currencies.

Investors during this period focused on buying the US currency as the best current investment in the foreign exchange market, especially in view of the increasing negative pressures facing other international currencies, especially the Euro and British Pound.

Indicators of progress in US-China trade talks have also played an important role in rising risk appetite in financial markets, increasing asset purchases and high-yielding currencies.

US President Donald Trump said the talks were going very well and he was inclined to delay the lifting of tariffs on Chinese goods on March 1 if the two sides were close to reaching a trade deal.

Investors are looking forward to a number of important economic data from the US on industrial output in January and consumer confidence in the US economy in February.

The expected monthly industrial production growth of 0.1% in January from 0.3% growth in December, and the maximum power utilization for the same month expected 78.8% from 78.7% in the previous reading.

The preliminary reading of the University of Michigan Consumer Confidence Index (CPI) was released in February, up 93.3 points from 91.2 in January.

 

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