Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. Data Signal Rate Hike Bets, U.S. Dollar Soars

By Kevin BeckmanMarket OverviewNov 24, 2021 11:53AM ET
www.investing.com/analysis/us-data-signal-rate-hike-bets-us-dollar-soars-200609445
U.S. Data Signal Rate Hike Bets, U.S. Dollar Soars
By Kevin Beckman   |  Nov 24, 2021 11:53AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The greenback received another boost from a slew of fresh economic data out of the United States on Wednesday. The dollar advanced to fresh multi-month highs in response to stronger-than-expected updates.

According to a second official estimate, the US economy grew by 2.1% in the third quarter, marking an 0.15 upward revision from the first estimate released last month. The weekly jobless claims report revealed better-than-expected results, suggesting the country’s jobs market is tightening faster than the Federal reserve anticipated.

Wholesale inventories data was also strong, while the goods trade deficit narrowed in October to the best level since December 2020.

On the negative side, durable goods orders unexpectedly contracted by 0.5% versus +0.2% expected. Still, capital goods orders non-defense ex-air came in at +0.6% versus +0.5% expected.

In general, the data painted a bright picture of the US economy, which implies that rate hike bets would rise further as inflation will likely stay hot in the coming months. Against this backdrop, the dollar will likely stay on the offensive both in the short- and the medium-term.

As the economic landscape keeps improving at a solid pace, the Fed may have to debate a faster withdrawal of its bond-buying program to fight the surging consumer prices. Should the upcoming economic reports ensure strong economic growth, a faster taper idea will be on the table at the Fed’s next meeting in December.

In this scenario, the dollar would extend the ascent versus most rivals driven by a monetary policy divergence theme.

U.S. Data Signal Rate Hike Bets, U.S. Dollar Soars
 

Related Articles

Jeffrey Halley
B.1.1.529 Infects Asian Markets By Jeffrey Halley - Nov 26, 2021 1

Asian stock markets were under heavy selling pressure with investors spooked by the emergence of a heavily mutated variant of Covid-19 in South Africa, lovingly called...

U.S. Data Signal Rate Hike Bets, U.S. Dollar Soars

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email