US Dollar falls, amid positive European news
July 8, 2018The U.S Dollar fell to three-week lows on Thursday, as the Euro gained on strong German industrial orders. Additionally, ongoing concerns about global trade also weighed on the greenback’s recent rally,the EURUSD traded at 1.16555 at the close of the session on Thursday.
Meanwhile, The U.S Dollar index dropped to a three-week low and was down by 0.21 percent at 94.47.
Furthermore, In the United States, there was further pressure on the Dollar after data showed private payrolls increased last month, but were lower than the projected forecast, while initial jobless claims rose unexpectedly last week.
The Institute for Supply Management’s non-manufacturing (purchasing managers index) gauge came in at 59.1 in June, up from May’s 58.6 and marks the strongest reading since February.
Regarding the Federal Reserves Federal Open Market Committee (FOMC) meeting, U.S. central bankers debated whether recession lurked around the corner and expressed concerns regarding global trade tensions that could hit the economy that by most measures looked robust, the Feds latest policy meeting minutes that was released on July 6th showed.
While, the Euro climbed after German industrial orders had a higher-than-expected jump in May after four consecutive monthly drops, as demand from domestic customers and the rest of the euro-zone picked up. At the same time, there has been a softening in U.S. trade rhetoric towards European Union carmakers, also helping the euro. However, a deadline for Washington to impose tariffs on Chinese imports set for July 6, has kept the market range bound.
Over in the United Kingdom, The pound rose to a seven-day highs on Thursday as traders strengthened their bets on an interest rate hike this summer, but concerns about a crucial Brexit meeting on Friday kept the currency’s gains in check.
After a frail start in 2018, the British economy is showing early signs of recovery with surveys for the manufacturing, construction and services sectors beating projections and heightening the prospect of a rate hike by the Bank of England this August.
Regarding the safe havens, the USDJPY was trading at 110.463 higher by 0.13 percent at the close of the session on Thursday.
Meanwhile, the Commodity and oil-linked Currencies, Australian, New Zealand and Canadian Dollar, finished in mixed territories against their U.S. counterpart.
The Canadian dollar edged lower against its U.S. counterpart on Thursday; The loonie Dollar was pressured lower by the unexpected rising crude oil inventories. On the other hand, The U.S Dollar advanced against its Canadian counterpart as the stock prices rose and investors braced for the upcoming interest rate hike.The USDCAD traded higher by 0.08 percent at 1.31300 at the end of the session.
Regarding oil news, oil prices have declined after the U.S Energy Information Administration reported an inventory build of 1.2 million barrels for the week to June 29th, opposed to the forecasted negative 5.2 million barrels. This follows three consecutive weekly draws of a total of 19.9 million barrels.
Moreover, the Australian Dollar, which is considered a liquid proxy for China-related risk. The AUDUSD was up by 0.04 percent to trade at 0.73858 at the close of Thursday’s session. Meanwhile, the Kiwi Dollar gained 0.3 percent to trade at 0.67844 NZDUSD at the close of the session on Thursday.
The U.S Dollar fell to three-week lows on Thursday, as the Euro gained on strong German industrial orders. Additionally, ongoing concerns about global trade also weighed on the greenback’s recent rally,the EURUSD traded at 1.16555 at the close of the session on Thursday.
Meanwhile, The U.S Dollar index dropped to a three-week low and was down by 0.21 percent at 94.47.
Furthermore, In the United States, there was further pressure on the Dollar after data showed private payrolls increased last month, but were lower than the projected forecast, while initial jobless claims rose unexpectedly last week.
The Institute for Supply Management’s non-manufacturing (purchasing managers index) gauge came in at 59.1 in June, up from May’s 58.6 and marks the strongest reading since February.
Regarding the Federal Reserves Federal Open Market Committee (FOMC) meeting, U.S. central bankers debated whether recession lurked around the corner and expressed concerns regarding global trade tensions that could hit the economy that by most measures looked robust, the Feds latest policy meeting minutes that was released on July 6th showed.
While, the Euro climbed after German industrial orders had a higher-than-expected jump in May after four consecutive monthly drops, as demand from domestic customers and the rest of the euro-zone picked up. At the same time, there has been a softening in U.S. trade rhetoric towards European Union carmakers, also helping the euro. However, a deadline for Washington to impose tariffs on Chinese imports set for July 6, has kept the market range bound.
Over in the United Kingdom, The pound rose to a seven-day highs on Thursday as traders strengthened their bets on an interest rate hike this summer, but concerns about a crucial Brexit meeting on Friday kept the currency’s gains in check.
After a frail start in 2018, the British economy is showing early signs of recovery with surveys for the manufacturing, construction and services sectors beating projections and heightening the prospect of a rate hike by the Bank of England this August.
Regarding the safe havens, the USDJPY was trading at 110.463 higher by 0.13 percent at the close of the session on Thursday.
Meanwhile, the Commodity and oil-linked Currencies, Australian, New Zealand and Canadian Dollar, finished in mixed territories against their U.S. counterpart.
The Canadian dollar edged lower against its U.S. counterpart on Thursday; The loonie Dollar was pressured lower by the unexpected rising crude oil inventories. On the other hand, The U.S Dollar advanced against its Canadian counterpart as the stock prices rose and investors braced for the upcoming interest rate hike.The USDCAD traded higher by 0.08 percent at 1.31300 at the end of the session.
Regarding oil news, oil prices have declined after the U.S Energy Information Administration reported an inventory build of 1.2 million barrels for the week to June 29th, opposed to the forecasted negative 5.2 million barrels. This follows three consecutive weekly draws of a total of 19.9 million barrels.
Moreover, the Australian Dollar, which is considered a liquid proxy for China-related risk. The AUDUSD was up by 0.04 percent to trade at 0.73858 at the close of Thursday’s session. Meanwhile, the Kiwi Dollar gained 0.3 percent to trade at 0.67844 NZDUSD at the close of the session on Thursday.
