The value of the dollar value on the basket rose last week, another in a row, because everything is more likely that the American Central Bank will not reduce interest rates before the fall.
The dollar index, which shows the value of USA to the six most important world currencies, increased by 0.6 percent last week, to 98.46 points.
The euro course fell 0.6 percent, to $ 1,1625.
The American currency also strengthened in relation to Japanese, by 0.9 percent, so the price of the dollar reached 148.80 yen.
Strengthening the dollar next week in a row thanks, among other things, his status of a safer refuge for capital in uncertain times.
And uncertainty in markets is the consequence of uncertainty due to the trade negotiations and the Washington Customs Policy. The US President Donald Trump says one day that trade negotiations with a particular country go well, and the second day threatens the increase in customs.
In addition, the expectations of the American Central Bank, but the interest rates would reduce the expectations of the US central bank.
Last week, namely, published that the consumer prices in June rose 0.3 percent on a monthly level, and 2.7 percent on the annual.
This is in line with the expectations of analysts, but it is also the highest rate of inflation from February.
“Inflation Report is mainly in line with expectations, but the increase in customs is beginning to feel in the economy,” says Rob Swanka, an analyst at the Commonwealth Financial Network.
On the other hand, the American economy is in good shape, so there is no reason to rush with incentive measures.
And the latest data show that the labor market is solid form, and last week has been published and that the turnover in retail trade in June rose 0.6 percent compared to the previous month, more than analysts expected.
As the consumption is the main driver of the economy, this fact shows that the largest world economy is growing stably.
Therefore, they subtrained expectations on the reduction of the interest rate in July, despite the constant calls of Trump to do so.
The President of the Fed Jerome Powell is ignored by Trump’s messages because he believes that he should not rush in interest reduction because inflation for the increase in customs months could increase.
Due to the vague, the Hirovite Trump Customs Policy, from 2. April, when Trump announced the introduction of reciprocal customs, the value of the currency basket fell more than 5.5 percent, and from the beginning of the year around 9.5 percent.
