The US dollar continues its downward spiral, almost reaching its one-month low against Yen. Moreover, as investors await the US inflation data, the currency traded weak against most major peers.
With the uncertainty in the market regarding the Fed’s interest rates stance, the currency is facing severe difficulties. Yen also gained from global stocks retreating after hitting the global peak amid worrying oil prices.
Overall, most stable assets surged in demand after fears of potential contagion in the Chinese market surfaced. The fear led to the downfall of New Zealand and Australian dollars.
After dropping to 112.83 yen, the US dollar threatened to reach 112.73, a figure it hit back on October 11th. The dollar index (the currency’s benchmark against six peers) slipped to 94.053 after dropping from the year peak at 94.634.
The Euro also slipped 0.13% to 1.15805 dollars but maintained its three-day gain. The currency traded around 1.16165 dollars, close to its month’s peak. The US consumer price index for the previous month is about to be released. You can find out more about the platform in our broker list its features & more that are suitable for you.
Amid the anticipation, the market is experiencing a shrewd uncertainty. Several forex brokers are predicting a 0.4% growth in the monthly index. The number is 0.2% higher than the previous month’s rate.
Meanwhile, the year-to-year core measure is growing 0.3%, reaching 4.3%. It should be noted that the measure is well above the Federal Reserve’s annual inflation target of 2%.
Chris Weston, Research Head at Pepperstone, Melbourne, talked about the recent development. And if want to know more about Pepperstone, you can check our page. However, Chris foresees an 0.8% month-to-month print, taking the dollar index around 94.50. While the safe haven has been experiencing difficulties against the Yen, a positive US consumer price index can affect the USD-JPY shorts.
On the other side, the Australian dollar dropped 0.33% to reach 0.7355 dollars. The currency hit the 0.73545 dollar mark for the first time since October 13th. Similarly, the NZD also fell 0.36% to 0.7104 dollars.