- October 18, 2018
- Posted by: Trading
- Category: News
Investing.com – The dollar rose against its rivals Thursday as a slew of positive U.S. economic data reaffirmed investor expectations that the Federal Reserve will continue with its glacial pace of rate hikes, despite criticism from President Donald Trump.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.31% to 95.65.
The Philadelphia Fed said Thursday its fell to a reading of 22.2 in October, below 22.9 last month but above economists’ estimates for 19.7.
The U.S. Department of Labor, meanwhile said dropped by 5,000 to a seasonally adjusted 210,000 for the week ended Oct. 13, beating economists’ forecast for a drop to 211,000.
The pair of reports underlined the strength to the U.S. economy, reaffirming investor expectations for further rates hike following the somewhat hawkish Fed minutes released on Wednesday.
The majority of Federal Reserve members said they expected the central bank would increase rates beyond the neutral level over the longer run, according to the minutes.
Trader expectations for the December rate hike jumped to , from about 80% on Wednesday prior to the release of the minutes, according to Investing.com’s Fed Rate Monitor Tool.
Higher interest rates have been blamed for recent market turbulence, particularly in equity markets.
Trump on Tuesday said the Fed was his “biggest threat” because it was raising rates too fast.
The dollar was also spurred higher by slump in euro amid reports of heightening tensions between the European Commission and Italian officials.
fell 0.40% to $1.1456.
The pound, meanwhile, came under selling pressure against the greenback after little progress was made on the Brexit talks, prompting UK Prime Minister Theresa May to warn “more difficult moments” lie ahead.
fell 0.72% to $1.3021
A sharp retreat on Wall Street meanwhile prompted a flight to safety benefiting safe-haven yen against the greenback.
fell 0.46% to Y112.14.
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