Should We Be Wary of the Rising U.S. Dollar's Direction?

Should We Be Wary of the Rising U.S. Dollar's Direction?

13.07.2021

Yesterday, the three major U.S. stock indices all rose, hitting new record highs. The Nasdaq closed at 14,733 points, up 0.21% from the previous day, while the S&P 500 also closed at 3,484 points, up 0.35% from the previous day.The Russell 2000 also rose slightly, closing at 2,281.

In the foreign exchange market, the Dollar Index has fallen to 92.1, weighing on the U.S. dollar.Although the euro fell against the dollar during yesterday’s European trading session, it has since recovered and is currently trading around 1.185. On the daily chart, the pair has been trading sideways within the 1.17–1.225 range; we’ll want to wait and see whether it continues to rise, keeping an eye on the direction of the U.S. dollar.

Today, during Asian trading hours, Germany’s Consumer Price Index (final reading) will be released at 15:00, followed by Switzerland’s Producer Import Prices at 15:30, France’s Consumer Price Index (final reading) at 15:45,at 16:00 during European trading hours: Turkey’s Industrial Production Index; at 21:30 during U.S. trading hours: the U.S. Consumer Price Index; and at 25:00: remarks by U.S. Federal Reserve Bank of Atlanta President Bostic, U.S. Federal Reserve Bank of Minneapolis President Kashkari, and U.S. Federal Reserve Bank of Boston President RosengrenPresident of the Federal Reserve Bank of Boston. We will be watching closely to see if today’s economic data releases provide a clear direction for the U.S. dollar.