The dollar closed higher this Thursday, June 27, even though the latest batch of economic data reinforced speculation that the Federal Reserve may cut rates this year.
The currency closed on Thursday at an average of $4,157.80, placing itself $24.19 above the Representative Market Rate, which today was at $4,133.61.Today, the currency reached a maximum of $4,183 and a minimum of $4,122.1. There were 2,938 transactions for an amount of US$1.558 billion.
According to Bloomberg, recurring applications for unemployment benefits in the United States rose to the highest level since late 2021, a warning sign suggesting that the unemployed are taking longer to find a job.
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Commercial equipment orders placed with factories unexpectedly declined in May, indicating that Companies remain cautious about investment amid low borrowing costs higher long-term prices and weaker demand.
“More specifically, we expect these themes to continue to benefit from an environment where growth is slowing, but the Federal Reserve is expected to begin a deep cycle of cuts,” Chris Senyek of Wolfe Research told Bloomberg.
“Besides, our sense is that the larger companies driving these trends will once again deliver very strong results during the second quarter earnings season,” Senyek added.
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Crude oil prices rose on Thursday as the risks of supply disruption arising from rising geopolitical tensions in the Middle East helped offset demand fears following an unexpected rise in US stocks.
Concerns that the war between Israel and Hamas in Gaza could spill over into Lebanon limited the fall in prices.
“If it weren’t for the steady and progressive increase in geopolitical risk in the Middle East, oil prices could have had a much more negative day.” said John Evans, analyst at PVM Oil.
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