The dollar jumped on Thursday, on the track for the increase in its biggest daily percentage in almost two months, when the latest US President Donald Trump’s commentary houses signs of slower economic growth.
Greenback initially explored profits after the data showed that the initial unemployment claims rose 22,000 to 242,000 which were adjusted seasonally, above the estimated 221,000 economists surveyed by Reuters.
However, the Ministry of Trade said gross domestic product increased at an annual level of 2.3% the last quarter after accelerating at a speed of 3.1% in the July-September quarter in the second data estimated.
The dollar quickly recovered after Trump said the 25% tariff for Mexican and Canadian goods would be valid on March 4 as scheduled because drugs still flowed to the US from these countries.
“This morning’s movement I think it is understandable if you think that people have come to last week and even this week, re -position for a softer tariff position,” said Erik Bregar, Director of Forex & Precomious Metals Risk Management, at Silver Gold Bull in Toronto.
“Clarification has thrown the right key into your trade. I didn’t think the steps this morning, the thorny dollar, were the people who jumped into the new trade. They came out. This is more a ‘Get Me Out’ Panicky movement. “
The dollar index, which measured the greenback against a basket of currency, rose 0.65% to 107.14, on the track for the biggest daily percentage increase since January 2. Euro dropped 0.65% to $ 1,0415.
Canadian dollars fell 0.62% versus greenback to C $ 1.44 and Mexican Peso dropped 0.17% versus the dollar at 20.482.
Earlier this week, Greenback had dropped nearly 4% of the highest more than two years in January due to new concerns about US economic growth and inflation when Trump changed the deadline for tariffs in Canada and Mexico. Investors also strengthen the impact of the labor market of action by the government efficiency department under Elon Musk.
The interest rate of interest rates by the Federal Reserve becomes unclear, with market prices in 55 basis points classy at the end of the year, and cutting at least 25 bps that did not reach 50% until the June meeting.
The European Central Bank is expected to cut interest rates next week to 2.50%, according to all 82 economists surveyed by Reuters who expect two further cuts in the middle of the year.
Japanese yen fell 0.52% against greenback to 149.85 per dollar. Japanese Bank Governor Kazuo Ueda told reporters at the closing of a group of 20 financial meetings in South Africa that many countries have warned the uncertainty of high global economic.
Sterling fell 0.36% to $ 1,2627.
In Cryptocurrency, Bitcoin rose 1.02% to $ 85,314.69 after dropping to $ 82,156.99 on Wednesday, the lowest since November 11.
Source: Reuters (reporting by Samuel Indyk and Brigid Riley; editing by Shri Navaratnam, Sam Holmes, Kevin Liffey, Alex Richardson and Richard Chang)
