Foreign exchange rate on February 18. USD cooled down
The US Dollar Index, a measure of the greenback's strength against other major currencies, closed the week at 96.92 points, up 0.29% from the previous week's close.
The exchange rate of euro against the greenback dropped 0.24% to 1.1296 USD. While the pound exchange rate dropped 0.3% to 1,2904 USD.
The USD exchange rate against the Japanese yen increased sharply by 0.67% to 110.47 yen. read more: https://tygia.vn/
In the past week, the greenback was actively supported after data on US core inflation was released. Accordingly, after excluding food and energy prices, the core CPI has increased by about 0.2% and is the 5th consecutive rising month of this index.
Data on inflation tends to have a positive impact on the greenback when it increases expectations The US Federal Reserve (Fed) will tighten monetary policy.
However, the dollar cooled down on the weekend as San Francisco Fed Chairman Mary Daly said the central bank may delay raising interest rates in 2019.
Besides, the dollar also weakened sharply on Thursday when US retail sales in December 2018 fell the most in more than 9 years, indicating a sharp decline in consumer activity which accounted for more than 2 / 3 US GDP by the end of 2018. Thereby supporting the slowing trend in the Fed rate hike process.
This week, the Fed is expected to announce the January meeting minutes on Wednesday (February 20), whereby interest rates will be maintained and reflect a "more moderate" view of raising interest. Future rates also provide information on inflation and increased risk for global economic growth.
In addition, some Fed officials include Fed President New York branch - John Williams and head of the Fed at St. John's. Louis - James Bullard will have a public speech this week. read more https://tygia.vn/ty-gia/mbbank
Besides, the United States and China are expected to resume the fifth round of talks this week in Washington (USA). According to White House Press Secretary, Sarah Sanders, the two countries "will continue to discuss all outstanding issues" before March 1.
"Any bad news from trade discussions between the US and China can also push the dollar exchange rate up again due to investor demand for safe-haven assets when the economy is there is a disturbance, ”said Chris Turner, head of foreign exchange strategy at ING.
Meanwhile, investors are waiting for a report on durable goods on Thursday (February 21) to update the health of the manufacturing industry. At the same time, a report on home sales published on the same day will give a concrete view on the housing market after the sector lost its momentum for growth at the end of last year amid bank interest rates. and increased asset value. read more
