The US dollar index touched a high figure of 22 months

The US dollar index touched a high figure of 22 months

The US dollar index touched a 22-month high. The popular index, which tracks the American currency, has grown to a 22-month maximum on Wednesday, as most of the world's major currencies have weakened.

US dollar 

The US dollar index, which measures the unit against the six major currencies, was 98.108, which is 0.5% per day. In trading on Wednesday morning, the index reached its highest level in 98.141, the highest level since June 2019.

Largest movers

The Australian dollar dropped 1.3% on Wednesday after the Australian Bureau of Statistics said that consumer prices are flat for the first quarter of 2019, under the market consensus of 0.2%.

Weaker readings than forecasts made by traders estimate the likelihood of a central bank will trim interest rates later this year. The reduction of interest rates leads to a weakening of the currency in which the central bank participates.

In the last trading, the Australian dollar was at $0.7008, compared to $0.7101 on Tuesday night.

The Australian pulled the lower New Zealand dollar, trading with Kiwi at $0.6585 against the dollar, by 1.1%.

Elsewhere, the dollar was down 0.5% after Canada's central bank, as expected, allowing interest rates to change but to reduce its growth prospects. In the last trading, the US dollar brought C $1.3488.

At the beginning of the Friday trade in Asia, the US dollar index remains at a peak of 2 years, because the FX trader expects the growth data to be released today from the US. Currently, economists predict that the results for the first quarter will show a decline of 2.1% (year-to-year) by 2.2% in the previous period. Basic personal consumption is also estimated as a bit of a recession of 1.6% from 1.8% (quarter-quarter basis). On Thursday, the U.S. Census Bureau reported a rise in orders for durable goods last month, the largest increase in eight months. With the latest news about the growth of exports and retail sales, fears about a slowdown in the US economy began to weaken.

As reported in 9:48 (JST) in Tokyo, USD/JPY traded in the amount of 111.5090 yen, which is 0.0592%; The range of the pair starts from 111.451 to 111.588 yen in Jena. AUD/USD traded below amounted to $0.7013, down 0.019%, from the session through $0.70120. Trade NZD/USD amounted to $0.663, which is 0.03%; Pair previously ranged from $0.66253 to $0.66385.

Japan reported that inflation rates were optimistic.

Yen Japan gets some reports from unexpected inflation data very optimistic. According to the Bureau statistics, the CPI (excluding fresh food) increased by 1.3% in April (year by year), which is higher than the median, which is estimated at 1.1%. Overall, the CPI rose to 1.4% from 0.9% 0.8%, higher than projected economists. Retail trade has also unexpectedly increased. The news about the decline in industrial production was the only disappointment, with the initial figures showed a significant decline to-4.6 C-1.1% (year by year).

What are analysts?

 "The message we receive from a meeting of the RBA Policy (Reserve Bank of Australia) last is that the current policy stance may not be in line with the World Bank's goals and that lowering interest rates can be done in the coming Months, write to Charalambos Pissuros, senior market analyst at JFD Bank.

So, with all this in mind, we believe that inflation data overnight can induce market players to increase interest rates in the coming months, and so the Australian fell off the cliff, Pissuros said.

Count Today-Germany IFO

The German IFO business climate index is below market expectations. Reading worse than expected, the strength of the dollar combined with a broad-based, see the euro fall through $1.12. The total currency to prolong the losses at the beginning of the bidding day, reaching the lowest level in almost two years in $1.1151.

UK pound dropped 0.3% on $1.2899. Japan yen down 0.4% to ¥112.33

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