The U.S Dollar index fell despite expectations that the gradual pace of rate hikes would continue.

The U.S Dollar index fell despite expectations that the gradual pace of rate hikes would continue.

August 27, 2018 0 By Ali Hwary

The U.S Dollar index fell sharply against the basket of six major currencies to close the Friday’s trading session in the red territory at 95.05 despite the Chairman of Fed announced on Friday that there were no “clear signs” of an elevated risk of the economy overheating, affirming expectations that the gradual pace of rate hikes would continue.

Moreover, the Greenback found pressured from weaker than expected goods orders data where the Department of Commerce in the United States announced on Friday that,  core durable goods orders dropped by 0.2% in July, missed the analysts’ expectations of an increase of 0.5 percent. However, the non-defense ex-air orders rose by 1.4%, above economists’ estimates.

In Eurozone, Both Euro and Great British Pound benefited from weaker dollar were both rose against the Greenback to end the session higher at 1.1621 EURUSD and  1.2848 GBPUSD.

Regarding safe-havens, the U.S Dollar declined against both the Japanese Yen and Swiss Franc to trade at lower at 111.22 USDJPY and 0.9833 USDCHF while the prices of the precious metal rose sharply on Friday to settle up at 1205.70 XAUUSD.

Elsewhere in Canada, the Greenback fell against the Loonie to end the session down at 1.3025 USDCAD despite the increase in oil prices where U.S crude oil rose to close Friday’s trading session in the green territory at $68.51 a barrel.

In Asia, both the Aussie and Kiwi rose sharply against their U.S counterpart to end the session up at 0.7325 AUDUSD and 0.6689 NZDUSD.

On cryptocurrency pace, Bitcoin, Litecoin, and Etherum all rose against the U.S Dollar to finish the session slightly up at 6585.01 BTCUSD, 56.10 LTCUSD, and 277.32 ETHUSD.

Among this week event, investors are keeping an eye on the UK’s inflation report which would be released on 28th of August,  U.S GDP where it would be stated on the 29th of August and the Euro’s inflation data and unemployment rate which would be announced on 30th of this month.

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