Dollar Surges as Strong US Data Outweighs Weaker Numbers
The US dollar rose by 0.24% on Wednesday due to signs of strength in the US economy, according to TradingView. The July personal spending and income numbers beat expectations, with a +0.2% m/m increase in personal spending and a +0.4% m/m rise in personal income.
The dollar's gains were limited by lower-than-expected capital goods new orders nondefense ex-aircraft and parts, which rose only 0.2% m/m, as well as the July core PCE price index, which increased in line with expectations at +3.3% y/y.
The stronger dollar weighed on the euro, which fell by -0.19% on Wednesday, but was supported by hawkish comments from ECB Executive Board member Isabel Schnabel, who stated that interest rates in the Eurozone must rise further due to inflation risks.