US Dollar and Euro Updates

The US dollar scaled to a one-month peak against major currencies with data on inflation and business orders reinforcing confidence in the nation’s economy and raising expectations the central bank will increase interest rates by the middle of 2015. The currency was also boosted by remarks of St Louis Federal Reserve chair James Bullard that this has a strong impact on fiscal policy.

The greenback’s rise came after uninterrupted losses due to dovish indications from Fed Chairperson Janet Yellen during her bi-yearly testimony before US lawmakers.

US economic officials declared the CPI falling 0.7 percent last month because of the sharp decrease of crude oil prices. However, its core reading increased 0.2 percent quicker than the forecasted growth of 0.1 percent.

This influenced the view of domestic disinflation, according to a currency strategy of a euro bank based in New York.

Another positive figure is the upsurge in orders of durable goods by more or less 2.8 percent.

The dollar last traded one percent upward at 95.224. Meanwhile, the shared currency stumbled 1.4 percent versus the dollar and plunged to a low of one month at $1.1198 (EBS trading platform.)

It went down to three-week lows against the Japanese yen. The euro was down 0.9 percent at 133.70 yen.

The dollar gained almost 0.4 percent versus the yen to 119.27.

On the other hand, the UK pound Sterling decreased 0.8 percent against the US note to $1.5409.

The stop in the dollar’s rally will possibly go on for one or two months, according to analysts.

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