A relatively upbeat Mario Draghi did little to dent the dollar’s rip higher as investors re-focused within the divergent US and euro-area economies.
The greenback set a 2018 high for the third straight day while the eu Central Bank chief said risks to euro-area growth remain ” broadly balanced,” as he kept rates at zero. His comments came after the slate of dismal European figures, including a Purchasing Managers’ Index propose that showed euro-area growth slowed.
That’s in comparison with the economic picture in the usa, depending on Citigroup, because of the strength among us leading indicators and also the Federal Reserve’s resolve forpersistance to hiking rates. While ECB officials were “as optimistic while they could possibly be,” that wasn’t enough to crimp the greenback’s strength, said Calvin Tse, Citigroup’s North American head of G-10 FX strategy.
“Investors are eager to choose the dollar to the back of knowledge divergence,” Tse said. “The better investment opportunities — high growth, high yields, a deep pool of liquid safe assets — in every scenarios, you should buy the united states dollar.”
The dollar rose against a lot of its Group-of-10 peers Friday, with all the Bloomberg Dollar Spot Index climbing 0.1% to the strongest level since June 2017. The euro fell 0.1% to $1.1366, not to near above its year-to-date low.
Investors will receive their next update over the state of the usa economy with Friday’s third-quarter gdp reading. Growth likely cooled with a 3.3% annual rate of expansion, based on a Bloomberg survey, from 4.2% inside the prior period, that is the easiest since 2014.
? 2018 Bloomberg L.P