The US dollar felt to its lowest level for 2.5 months in a Tuesday sales session. It is because the investors are quite busy for betting on the American inflation data that will be released soon. 

If the data increases, the dollar exchange can be grinder. When this news written, the USD index was up for 0.22 percent to 90.08. That was lower than in the 26 of February this year. 

Since some years lately, the expectation to the US inflation increase becomes the supporter of the dollar bullish. The investors assumed that high inflation may supports the increasing interest rate. 

The Disappointing Nfp Data

Before, The Fed stated that the inflation increase is temporary so that it will not directly trigger the interest rate jump. Besides that, the NFP disappointing data released also triggers the dollar sales. 

The commodity price increase can boost the inflation. However, many parties believe that the thing like this will not change the interest rate level and its asset purchasing program in a closer time. 

Maybe, there will be a report that shows that inflation is beyond the expectation. However, There is only a small possibility that the strong dollar rally will occur. There is a reason for it. 

Only a few of the market participants expect that the Fed will react on that data. Several people are still worrying about that data. That worry spreads to the whole financial market sectors. 

The Commodity Dollar Rally Is Stronger

The USD rival which has a strong increase is the Canadian dollar. When this news released, Canadian dollar which is a commodity currency was sold in 1.2093 per USD. It is the strongest level. 

The economy works is quite strong so that it supports the expectation for the Canadian Central Bank to increase the rate earlier than the Fed. The US employment data also creates an impact. 

It makes the interest rate divergence is sharper so that it lifts the Canadian dollar. However, the biggest impact so far is more because of the metal prices increase. The different thing is happened on sterling. 

That currency was consolidated around 1.4130 to the USD. That happened in the middle of an European session yesterday. It is especially some hours after the GDP data released for the Great Britain area. 

The Effect of Resistance Limit

In fact the resistance level has an impact for sterling. However, the latest news about the England economic is more to the Bullish situation for the middle and long-term period. What is next? 

The ONS or UK office for National statistics stayed that the GDP growth may be higher around 2.1 percent. That is actually the month – over – month type in March 2021. It is the fastest worth. 

That is especially in England since the August 2020. It can be happened after some schools in that area are opened again. They start to do a back to normal situation amidst the pandemic with the tight protocol. 

The March 2021 datas are quite solid. The GDP growth is supported by the 5.8 percent increase in the construction sector. The 2.1 percent is for the manufacture sector and 1.8% for the industry.. 

The Data Contributes Really Well

In fact, those datas have the positive contribution. It is especially to fix the data in the first quarter which is generally is still in the negative territory. The first quarter in 2021 was -1.5 percent. 

That was a little bit better than the consensus estimation of – 1.6%. The yearly GDP growth is also better so far. It was becoming – 6.1 percent from – 7.3 percent year on year. 

Furthermore, the analyst sure that the British economic growth will be brighter in the second quarter. They justify some policy changes made by the Central Bank of England at the same time.