U.S. Dollar Advances As Jobless Claims Drop, PCE Inflation Rises
August 31 2023 - 9:14AM
RTTF2
The U.S. dollar moved up against its major counterparts in the
New York session on Thursday, as the Federal Reserve's preferred
gauge of inflation accelerated in July and initial jobless claims
fell unexpectedly last week, supporting expectations that the
central bank will keep interest rates on hold at its policy meeting
next month.
Data from the Commerce Department showed that the annual rate of
consumer price growth increased to 3.3 percent in July from 3.0
percent in June. The faster growth matched expectations.
On a monthly basis, consumer prices rose 0.2 percent in July,
matching the uptick in June as well as economist estimates.
The annual rate of growth by core consumer prices, which exclude
food and energy prices, inched up to 4.2 percent in July from 4.1
percent in June. The modest increase also matched expectations.
Core consumer prices rose by 0.2 percent on a monthly basis in
July after edging up by 0.2 percent in June, in line with
estimates.
The report said personal income crept up by 0.2 percent in July
after rising by 0.3 percent in June, while personal spending
advanced by 0.8 percent in July after climbing by 0.6 percent in
June.
Data from the Labor Department showed a slight decrease in
first-time claims for U.S. unemployment benefits in the week ended
August 26.
Initial jobless claims edged down to 228,000, a decrease of
4,000 from the previous week's revised level of 232,000.
Economists had expected jobless claims to inch up to 235,000
from the 230,000 originally reported for the previous week.
The greenback climbed to 0.8845 against the franc and 1.0840
against the euro, setting 2-day highs. Next key resistance for the
currency may be located around 0.90 against the franc and 1.06
against the euro.
The greenback rebounded to 0.6461 against the aussie and 1.3551
against the loonie, from its early lows of 0.6507 and 1.3514,
respectively. The greenback is seen facing resistance around 0.63
against the aussie and 1.38 against the loonie.
The greenback was up against the kiwi, at a 2-day high of
0.5930. The greenback may challenge resistance around the 0.56
level.
The greenback ticked up to 1.2652 against the pound, reversing
from an early low of 1.2734. If the currency rises further, 1.23 is
likely seen as its next upside target level.
In contrast, the greenback fell against the yen, touching a
1-week low of 145.45. On the downside, 138.00 is likely seen as its
next support level.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Sep 2024 to Oct 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Oct 2023 to Oct 2024