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Dollar rises after US data beats expectations and liquidity demand increases
The dollar index climbed 0.18% as weekly jobless claims hit a 10-week low and the Philadelphia Fed outlook survey jumped to a 4.5-year high, while pending home sales fell 5.4% month over month.
The US dollar rose for a second day as investors pointed to better-than-expected US economic reports, with the dollar index (DXY) up 0.18%. Yahoo Finance said the move was reinforced by weaker stock performance, which can boost demand for dollar liquidity.
Weekly initial unemployment claims fell 8,000 to 208,000, a 10-week low, indicating a stronger labor market than forecasts. June retail sales rose 0.2% month over month, matching expectations, while retail sales excluding autos fell 0.2% month over month versus a forecast decline of 0.1%.
The July Philadelphia Fed business outlook survey climbed by 31.1 points to 41.4, its highest level in 4.5 years, beating expectations. However, June pending home sales dropped 5.4% month over month, and the June pending home sales decline is described as the steepest in six months.
Support for the dollar also reflected rising crude oil prices and inflation expectations, Yahoo Finance noted, after the US launched fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. At the same time, gains in the dollar were described as limited after the housing data, with June pending home sales weakening the outlook.
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