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US Dollar Rose Due to Decent Inflation and Labor Data

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US Dollar Index rose by 0.5%

The US Dollar Index rose to a high of 94.6 when the labor and inflation data were released on October 15, 2015. The nearly 0.47% rise in the US Dollar Index was also helped by Ewald Nowotny’s comments. He’s a member of the ECB (European Central Bank) governing council. He suggested expanding the stimulus program to further weaken the euro. The US Dollar Index closed at 94.4.

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Unemployment and inflation are decent

The U.S. Department of Labor published the unemployment claims for the week ending October 10. The claims were at 255,000. This was 7,000 less than the previous week. There was also a downward revision of 1,000 jobs for the week ending October 3, 2015. The CPI (consumer price index) for September was published by the Bureau of Labor Statistics. It fell on a month-over-month basis by 0.20%, while the core CPI saw a higher-than-expected rise of 0.20% for September. Services, less energy, posted a rise. The fall in energy prices resulted in the overall fall of 0.20% in the CPI.

Impact on the market

On October 15, 2015, ETFs were trading on a positive note. The SPDR S&P 500 ETF (SPY) ended higher by 1.5%. On the other hand, the SPDR S&P MidCap 400 ETF (MDY) was trading higher by 1.2%.

Banking companies were trading positively. Bank of America (BAC) rose by 3.5% during the day. Other banks like Citigroup (C) and JPMorgan Chase (JPM) were trading higher by 4.4% and 3.2%, respectively.

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