The dollar appreciated on Thursday, backed by a weaker euro after the record of the last European Central Bank meeting. This growth was limited after rumors were made that US National Economic Council Director Gary Horse would resign. This managed to counteract the earlier dollar profits against most currencies and send the dollar index to the bottom of the day.
A little later, the market was again volatile and the dollar was able to record small gains after the White House said Conn “planned to remain in its current position.” This in turn helped calm markets. However, analysts say the dollar has been in an unflattering position after the headlines of the White House are even worse over the already weak US currency.
Omer Sinner, analyst at the Commonwealth Foreign Exchange, commented that the shorthand record of the last Fed meeting published on Wednesday certainly did not help the dollar, and we have to accept that the US currency is on an unstable basis. He added that recent rumors amplify negative attitudes towards green money.
The largest component of the US dollar index is the euro, with the index measuring the value of the dollar against other six major currencies plunging to a 3-week low. The reason for this is the ECB’s warning of a possible excessive demand for the single currency. For reference, the euro has risen by almost 12% against the dollar this year. That recent rumors amplify negative attitudes towards green money.
Today more interesting economic news will be linked to the US and Canadian dollars. The inflation figures in Canada showed an increase in core inflation.
This could be seen as a negative sign since last month inflation in Canada dropped by 0.1%. The consumer confidence of Michigan University will be announced. These data represent a survey among 500 users that assess the relative levels of current and future economic conditions. The prevailing expectations are for better values than 94.0 points, compared with past data of 93.4 points. This may have a positive impact on the US dollar.