USD fell slightly in the European market on Wednesday against a basket of global currencies, down from the highest level in two and a half months earlier in the Asian market, this comes with a relative activity of correction and profit taking, and headed the currency to achieve the largest monthly gain since May, And investors will be looking later for important data on the US labor market, represented by the release of private-sector jobs data in October.
USD index fell by 0.25% to 11:55 GMT, trading at 96.75 points, the opening level of 96.82 points, the highest at 96.84 points since August 15 and the lowest at 96.64 points.
The index ended yesterday’s trading up by 0.3%, the second daily gain in a row, as the world’s most powerful currency continues to trade against most of the world’s currencies, supported by data showing consumer confidence in the US economy in October.
For the month of October, which has officially ended today, the dollar index so far has gained 1.9%, the biggest monthly gain since May, as the US currency is heavily in favor of most major and minor currencies.
This rally has supported 10-year US bond yields to a seven-year high, with strong prospects for the Federal Reserve to accelerate monetary policy tightening and raise interest rates for the fourth time this year to keep up with strong economic growth in the country.
USD has also supported purchases as the best investment in the foreign exchange market, with the difficulties facing other currencies, especially the European currency, the Euro and the British Pound. These are the political tensions in Germany and Italy, the hard and difficult commissions to date on the secession of the United Kingdom From the European Union.
Details of the Fed meeting on September 25-26 showed that US monetary policy makers generally agreed on the need to raise interest rates again to keep pace with economic growth, despite US President Donald Trump’s persistent criticism of interest rates.
Investors are looking forward to important data on the US labor market later today, with the release of private-sector jobs data in October. The positive data will extend the gains of the US currency to new highs in two and a half months and more.
The private sector is expected to release 188,000 jobs in October from 230,000 in September.