The dollar rallied against the euro on Friday, with cautious speech from the European Central Bank (ECB) undermining the single currency, while the greenback took advantage of a new record inflation indicator.
Around 6:45 p.m. GMT, the dollar gained 0.09% to 1.1815 dollars per euro.
the dollar fell at the end of last week and at the start of it, due to disappointing macroeconomic data on the US recovery.
It then recovered after the ECB meeting, before stabilizing at the end of the week, as the weekend approached.
the European Central Bank’s moderate inflation forecasts for 2022 and 2023, at 1.7% and 1.5% respectively, confirm that the institution will maintain an accommodative monetary policy for a long time to come, which is unlikely to support the euro.
In contrast, on Friday, the only notable indicator in the United States was the announcement of a producer price index at 8.3% over one year in August, the most sustained pace on record since this statistic was published (2010).
Forex traders will collect a new index next week with the Consumer Price Index on Tuesday before the US Central Bank (Fed) meeting on September 21 and 22.
Persistent inflation, while the Fed has maintained until now that it was only transitory, would put American central bankers under pressure, a climate favorable to the dollar.
The foreign exchange market was also driven by the Canadian dollar, which recorded gains against most major currencies, after the news that the national economy created some 90,200 jobs in August, much better than expected (60,000).
The unemployment rate fell to 7.1%, its lowest level since the start of the pandemic.
Another notable fact, the difficulties of the Pakistani rupee, close to its historic low against the euro and the dollar. According to several observers, the takeover of the Taliban in Afghanistan increased the purchases of dollars in Pakistan, in a climate of instability, which caused the national currency to fall.
AFP Source:
