Dollar set for longest weekly winning streak since 2014

September 08, 2023 / 9:24 PM
Sharjah 24 – BNA: The dollar headed on Friday for its longest weekly winning streak in nine years, bolstered by a resilient run of US economic data that has put the end of the Federal Reserve's aggressive rate-increase cycle into question.
The US dollar index , which measures the greenback against major peers, was last 0.05% lower at 105 but remained not far from the previous session's six-month high of 105.15, according to Reuters.

The index was on track to extend its gains into an eighth straight week, and is up 0.7% thus far.

"The relative divergence of the U.S. and European economy is a key topic again and the weaker dollar story has just faded away," said Dane Cekov, senior macro and FX strategist at Nordea Markets.

Data out this week showed the US services sector unexpectedly gained steam in August and that jobless claims last week hit their lowest level since February, while in the euro zone, industrial production in Germany, Europe's largest economy, fell by slightly more than expected in July.

"The US economic data is still robust and in Europe it's flattening out. The dollar usually does well when the US economy outperforms peers and at the moment the US is the bright spot," said Nordea's Cekov.

September 08, 2023 / 9:24 PM

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