On Friday, after severe euro zone inflation numbers, the euro jumped against the US dollar which, after the suggested data that Federal Reserve would raise the interest rates two more times in 2017, rose against the yen.
Euro zone inflation is estimated to be at 1.9% in the first quarter, while the expected European Central Bank’s target is of below but close to 2 percent. And that helped to move the euro upward to $1.0947.
The ECB will certainly have to build inflation into their rhetoric at the June meeting, given the data,” said Jason Leinwand, founder and chief executive of FirstLine FX in Randolph, New Jersey.
According to the analytical forecast, the latest inflation figures could speed up the ECB to either upgrade its assessment of the European economy or suggest less need for stimulus.
After the U.S. Labor Department data showed 0.9% private wages and salaries acceleration in the first quarter, the US dollar rose 0.4% against the yen.
Though the gross domestic product increased at 0.7% annual rate, which has been the weakest performance since the first quarter of 2014 that somehow firmed the inflation and made the dollar rise.
According to the chief market analyst at Commonwealth Foreign Exchange Inc in Washington, Omer Esiner, “The GDP data won’t alter the view that the Fed may raise rates in June and then ultimately again in September.”
The durable concern over U.S. President Donald Trump’s dissatisfaction with the North American Free Trade Agreement (NAFTA) made the US dollar achieve its highest rate against the Canadian dollar since February 2016 and hit the point of C$1.3697.