Home NewsForex Market News The dollar fell more than 1% on a weekly basis, stopped rising for 3 consecutive times, and the euro recorded its best weekly performance since May | Anue Juheng

The dollar fell more than 1% on a weekly basis, stopped rising for 3 consecutive times, and the euro recorded its best weekly performance since May | Anue Juheng

by WOOWinvest
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The dollar fell more than 1% on a weekly basis, stopped rising for 3 consecutive times, and the euro recorded its best weekly performance since May | Anue Juheng


After data showed that U.S. business activity shrank for the first time in nearly two years in July, the U.S. dollar index rose slightly from the intraday slump and ended in darkness, down about 1.4% this week. The euro gave up some of its gains after the central bank raised interest rates, but still posted its best weekly performance since May.

In late New York trading on Friday (22nd), the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against six major currencies, fell 0.34% to 106.55, down 1.4% for the week.

S&P Global announced on Friday that the U.S. composite PMI fell to 47.5 in July from 52.3 in the previous month. Among them, the services PMI fell to 47 from 51.6, and the manufacturing PMI fell to 52.3 from 52.7, both hitting two-year lows.

Amid a sharp slowdown in service sector activity and weak manufacturing growth momentum, U.S. business activity fell into contraction territory in July, which may reignite discussions that the U.S. economy is slipping into recession.

Bipan Rai, head of FX strategy for North America at CIBC Capital Markets, said the dismal economic data showed a blow to market sentiment, similar to the situation in other parts of the world, reflecting the fact that financial conditions are tightening and inflationary pressures remain high.

However, Rai believes that even if the U.S. economy does slow down, it is impossible to infer that the dollar will experience some degree of weakness in the medium term, as the rest of the world has similar economies.

On the same day, S&P Global announced that the manufacturing PMI in the euro zone has fallen rapidly, and the growth of the service industry has almost stagnated. In addition, inflation has weakened the strength of consumer spending, and business activities in the euro zone have also fallen below the 50 line of prosperity and decline, falling into contraction.

The euro fell 0.16% to $1.0210 on Friday. The euro rose nearly 1.3 percent this week, its best weekly performance since May, boosted by the European Central Bank’s (ECB) rate hike.

Sterling was also dragged down by a slowdown in business activity during the session, before turning red slightly higher in late trade, up 0.09% against the dollar to $1.2002. Although the UK manufacturing and services PMIs were both higher than market expectations in July, they were still down from June.

The more risk-sensitive Australian dollar was down 0.12% at $0.6924, while the New Zealand dollar was almost flat against the greenback, up 0.02% to $0.6252.

As of Saturday (23rd) Taiwan time about 6:00 Price:

The dollar index was at 106.5723. -0.34% The euro against the US dollar (EUR/USD) was quoted at $1.0210 per euro. -0.1565% GBP/USD (GBP/USD) was quoted at $1.2002. +0.0834% The Australian dollar against the US dollar (AUD/USD) was quoted at 1 AUD=0.6924. -0.1298% The US dollar against the Canadian dollar (USD/CAD) was quoted at 1.2915 Canadian dollars per US dollar. +0.3808% The U.S. dollar was quoted at 136.05 yen against the Japanese yen (USD/JPY). -0.9537%

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