European Currency Is Powerless, USD Gets Stronger!

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 The strengthening US dollar pushed most major currencies lower in the European session following strong US inflation data boosting confidence for an interest rate hike next week.


The US dollar rose to a five -year high against the yen, extending the 1.5% gain it had recorded this week.


Both the policy meetings of the Central Bank of Japan (BOJ) and the Federal Reserve (Fed) will be held next week, but the US central bank is almost certain to raise its interest rates from record lows.


Meanwhile, the BOJ remained with their dovish stance despite expressing concern over rising inflation, causing the yen to remain gloomy.



In addition, the US dollar was also supported by investor vigilance following a meeting of Russian and Ukrainian Foreign Ministers that failed to reach an agreement in negotiations for a ceasefire.


The strength of the greenback dollar plunged the euro lower despite the outcome of the European Central Bank (ECB) policy meeting on Thursday saw President Christine Lagarde hawkish to end her quantitative easing.


The pound also declined, showing it gloomily at its weakest level since December 2020 after failing to capitalize on better -than -expected UK economic growth data in January.


On the other hand, the Aussie dollar and kiwi traded slightly lower amid gloomy market sentiment following a lack of progress in Ukraine-Russia talks. Meanwhile, the loonie dollar was stable ahead of the release of Canadian employment data in the New York session.

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