Investors, traders and other participants in the world foreign exchange market have come to the opinion that the exchange value of the US dollar (USD) is already showing signs of a fully stable currency without fluctuations in its volatility, as it was practically from the spring to the summer of this year 2023, according to economic correspondents in connection with financial strategists of investment banks. The beginning of autumn 2023 thus brings investor sentiment, which is so-called based on the bet that after the publication of economic data regarding inflation in the US and the state of the labor market in the US, central bankers from the Federal Reserve System (FED) have already finished raising interest rates.
Currently, during the European morning of Tuesday, September 5, 2023, at approximately 7:40 CET, the exchange value of the US dollar /USD) measured by the dollar index DXY (US Dollar Currency Index) was moving at the point value of 104.27 USD points with a daily growth of +0.03% of its point value so far according to this index, which compares the value of the USD with another six major world currencies. The value of the USD according to this index thus recorded a total decrease of -4.87% of its point value in the last 52 weeks in an annual comparison. However, compared to the beginning of this year 2023, the exchange value of the USD according to this point status of the DXY index showed an increase of + 0.66% of its point value compared to the end of last year 2022. Analysts of brokerage companies and financial strategists of the foreign exchange market explain this situation precisely due to the influence of central bankers from the FOMC FED (Federal Open Market Committee Federal Reserve System) in direct connection to the level of interest rates in the USA.
Under the influence of these facts and the changing investor sentiment in connection with the exchange value of the US dollar (USD), the trading trend of the global currency pair of the single European currency Euro (EUR) and the US dollar changed already during the European Monday afternoon and evening on 4/9/2023, as the world reserve currencies and major currencies of world commodity markets. Currently, during the European Tuesday morning on 09/05/2023, at approximately 7:51 CET, this currency pair EUR/USD was traded on the foreign exchange market in the framework of forex operations at a mutual exchange rate at a value of 1.078 USD per EUR with the previous by a daily drop of EUR by -0.11% against the USD. The US Dollar (USD) strengthened not only against the EUR but also against the British Pound (GBP) as it traded at $1.261 USD/GBP on the date and time, with GBP down by -0.063% against the USD for the day. According to analysts, the strengthening of the exchange value of the US dollar also caused a more moderate drop in the price of gold, which traded at a value of USD 1,963.30 per troy ounce on the indicated day and time, with a daily drop of -0.19% of its price so far.
Friday’s data from September 1, 2023 showed that US job growth accelerated in August this year 2023, but the unemployment rate jumped to 3.8%, while wage growth moderated. The United States economy created 110,000 fewer jobs than reported in June and July of this year, 2023. A flurry of economic data highlighting easing inflation and an easing labor market added to the impression that the U.S. economy is cooling without slowing sharply and bolstered hopes that the economy is poised for a soft landing, economic analysts said, citing analysts at brokerages and investment banks. For that matter, financial markets are pricing in a 93% chance the Fed’s FOMC members will keep interest rates steady this month, and a more than 60% chance the survey says there will be no rate hikes this year in 2023, the tool showed CME FedWatch. Based on this, the majority of key participants in the financial markets are convinced of the stability of the exchange value of the American dollar (USD).