The US Feds Have Shared Positive Inflation Figures Causing Dollar Price To Edge Higher
The trading price of the US dollar has reportedly edged lower in the recent trading session. According to the latest report, it was the European trading session where the dip began for the USD.
The US Feds Shared Inflation Data
The Wednesday trading session recorded a surge right after the US Feds shared the data for the October inflation rate.
Prior to the inflation data posting, the USD had reportedly gained in value as the overnight trading session took place.
However, as the inflation rate data was published by the Feds, the value of the dollar plummeted. The gains that the USD were all handed back and the situation is now moving in the downward territory.
A day back, the US Feds shared the inflation data that was key for the investors to make many decisions in regards to investing in the USD.
If the inflation data were to be higher than expected, then the Feds would have done something about the interest rates. As an outcome, the trading price of the USD could have surged.
However, as the inflation data shared by the Feds was below expectations, the situation changed significantly for the USD.
As the traders now expect a slight flexibility in the interest rates implementation, they are not so confident about investing in the greenback.
With the weakening sentiments, the trading price of the USD would plummet as the investors may not invest in the greenback. As the inflation data is below expectations, it is a positive signal for the economy.
However, it also suggests that the trading price of the USD would move in a downward direction.
DXY Traded 0.1% Lower
In the recent trading session, the DXY has recorded a decline. The report shows that it has experienced a 0.1% dip in the latest trading session. Following the dip, the value of the dollar dipped to 110.340.
It is quite surprising to see that the trading price of the USD had just experienced a major surge in overnight. At the overnight trading, the price of the dollar managed to surge by 0.8%.
On the other hand, the investors are also confident that the Feds would no longer continue with interest rate hikes following the November increase.
The investors now expect that from the month of December, the rate hike would start would loosen a bit. This would eventually mean that the trading price of the dollar would continue to plummet.
Inflation Rate was 7.7%
For the month of October, the expected inflation rate was 8.00%. However, the hike in the interest rates seems to have brought the inflation rates under control as the actual inflation rate was 7.7%.
After the dip, the value of the dollar dropped versus the GBP by 0.2%, 0.4% versus the AUD, 0.1% versus the JPY, and 0.1% versus the CNY.