Dollar surge continues on strong U.S. economy pre-election
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The dollar shot up again, reaching a three-month high against a range of major currencies. Analysts think this trend would likely continue, fueled by the U.S. economy’s resilience against a struggling Eurozone and rising bets on a Republican victory in next week’s presidential election. The economic data on jobs and PCE inflation this week isn’t expected to change the outlook. The DXY dollar index also peaked at 104.573. Iran confirmed that its oil sector is stable despite recent Israeli attacks on military targets across its territory. That eased tensions as global markets get ready for a busy week with key economic data and major corporate earnings. Among the anticipated data are results from the “Magnificent Seven” tech giants, U.S. and eurozone economic growth reports, and a monthly payroll report. Election impact on dollar and equities “Four factors are driving U.S. equities higher right now: better macro data, solid third-quarter earnings, rising expectations of a Republican sweep, and lower risk of escalation in the Middle East,” said Wolf von Rotberg, an equity strategist at Bank J. Safra Sarasin The dollar’s impact stretches across sectors. Oil prices slid over 6%, while gold followed with a drop. Israeli airstrikes hit military targets in Iran, fulfilling Israel’s promise to respond to recent missile attacks, though the response was measured. Israel’s shekel emerged as the top performer among 150 tracked currencies. On Wall Street, equity futures indicated a potential rebound after the S&P 500 recorded its first weekly decline in seven weeks. Airlines benefited as lower oil prices suggested reduced fuel costs, while energy stocks faced declines. Boeing also fell in pre-market trading, following reports on its capital-raising plans. For the U.S. bond market, facing its worst six-month selloff, this week is critical as it awaits the Treasury Department’s announcement on its debt sale plans.…
Filed under: News - @ October 29, 2024 7:22 am