Nov 15, 2024 (MENAFN via COMTEX) --
(MENAFN - Investor Ideas) Investorideas ( ), a go-to platform for big investing ideas releases market commentary from Quasar Elizundia,Expert Research Strategist at Pepperstone.
"The U.S. Dollar remains somewhat in an advance mode during the session, reaching levels not seen since last year, with the USD index (DXY) finding resistance at the 107-point level. Recent economic data in the United States provided initial support, though some of the movements following Thursday's positive results have been mitigated.
On the one hand, the new inflation metrics showed gains. Following the increase in the Consumer Price Index (CPI) yesterday, the Producer Price Index (PPI) also rose in October, with a monthly rise of 0.2% and a year-over-year increase of 2.4%, surpassing market expectations. As for the core PPI, excluding food and energy, prices increased 0.3% monthly and 3.1% year-over-year, representing the fastest acceleration in four months.
Additionally, initial unemployment claims reached their lowest level since May, coming in at 217,000 claims. This data brings relative calm regarding potential uncertainties about the labor market following the October NFP figures, which were impacted by volatility from strikes and storms. Together, these data reinforce the idea that the Federal Reserve may not need to cut rates significantly next year, as the economy appears to continue showing resilience and there are relative signs of moderation in disinflationary progress.
Moreover, certain uncertainties remain, particularly regarding the policies of the upcoming administration. Proposed increased restrictions on immigration and trade could add to inflationary pressures, which has further supported the advances of the U.S. dollar.
In summary, the recent advances of the USD are supported both by the strength of economic data and by the expectation of a political environment that could increase inflationary pressures in the medium/long term. This has driven the DXY index to levels not seen since last year, all while markets assess the potential future Fed decisions and the impact of the new administration."
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COMTEX_459829451/2604/2024-11-15T04:29:38
