US dollar rises after data, set for fourth straight weekly gain

Written by Chuck Micolajkkak

New York (Reuters) -The dollar was strengthened on Friday after the last round of economic data, which showed a recovery in import prices, while consumers’ morale remained defeated when the tariff fears jumped, and put it in a pace for the fourth weekly progress in a row.

The Ministry of Labor said that import prices have gained 0.1 % last month after they decreased by 0.4 % in March as a jump in the cost of capitalism that exceed the cheapest energy prices. Reuters economists expected that import prices, which exclude tariffs, will decrease by 0.4 %.

The dollar began reinforcement after a separate reading of consumer polls at the University of Michigan, as the consumer morale index fell to 50.8 this month, less than 53.4, from a final reading of 52.2 in April. In addition, inflation forecast increased for 12 months for consumers to 7.3 %, the highest level since November 1981, from 6.5 %.

Greenback began the week with an increase of more than 1 % on Monday after the United States and China announced a 90 -day stoppage on most of the definitions imposed on each other’s goods since early April, which regretted fears of the global recession, but it was heading to a decrease throughout the week due to lukewarm economic data.

“There is all these data, but the main headlines take responsibility,” said Juan Perez, director of trade at Monex Usa in Washington.

“The problem related to (trade) developments is that it occurs very faster, and that the continuous lacking that ends in the future continues. At the same time, we look at data that really does not reflect all the anxiety that we really lived.”

The dollar index, which measures greenery against a basket of currencies, increased by 0.36 % to 101.13, with the euro decreased by 0.37 % to $ 1.1146. Greenback increased by 0.7 % a week, which would indicate the largest weekly gains within 2-1/2 months, while the euro decreased by 0.9 % a week, and the right track of the largest weekly decrease since early February.

Greenback still has decreased by 3 % since April 2, when US president Donald Trump announced a series of definitions on countries around the world.

Perez said: “The idea that trade does not escape disturbances still affects long -term faith in dollars.”

Markets described the expectations of decline in price cuts from the US Federal Reserve this year as a result of signs of trade tensions and prices by 67.1 % for at least 25 BPS in the Central Bank meeting in September, according to LSEG data. The previous view was a possible reduction in July.