2023-08-16 12:40:00
© Archyde.com. The dollar is declining marginally in today’s trading despite the supporting data, so what is the reason?
Arabictrader.com – The US dollar witnessed a marginal decline during trading on Wednesday, after the green currency erased part of its gains made yesterday on the back of strong economic data, as the dollar was subjected to some pressure from several factors that pushed it to decline today.
dollar now
In terms of trading, it – which measures the performance of the US currency against 6 other major currencies – decreased by 0.10% to 103.120 points.
The most important factors that affected the movements of the dollar
The data released yesterday in the United States had shown strong growth in the United States during the month of July, which exceeded market expectations, as retail sales also witnessed greater growth than they achieved last month, despite the continuation of the monetary tightening cycle of the US Federal Reserve, putting pressure on the economy and economic activity, which gave some Strength to the dollar and pushed it to rise strongly during yesterday’s trading.
However, at the same time, the reading of the manufacturing index for the US state of New York appeared, which was very negative and far below expectations, as it showed a contraction in the manufacturing sector in the state, which slightly limited the dollar’s profits, although it did not prevent them completely.
This was followed by some reports issued today by the Wall Street Journal, according to which the United States is seeking to sever its scientific research relations with China by putting an end to the process of automatic renewal of a cooperation agreement that has been concluded between the two countries since 1979, which is automatically renewed every 5 years, thus making Putting some pressure on the dollar today.
In addition, today’s yields also declined, with investors’ interest in holding at their expense, as the benchmark US bond yields for 10 years decreased by 0.20%, which increased the dollar’s losses.
This came at a time when the dollar also incurred some clear losses against , after the release of higher-than-expected data today, 24 hours after the release of labor market data that showed a higher than expected wage levels in the United Kingdom, which reinforced expectations that the Bank of England will continue to tighten its monetary policy. , and led to clear gains for the pound sterling at the expense of the dollar.
On the other hand, the New Zealand dollar also rose against the US dollar, on the back of the Reserve Bank of New Zealand’s expected increase in interest rates by 25 basis points for the coming period, despite the bank’s decision to keep its monetary policy unchanged today.
Dollar and currency pairs
In terms of trading, the US Dollar rose by 0.1% to $1.0917, and against the US dollar it rose by 0.28% to $1.2733, on the back of higher-than-expected inflation data this morning.
As for its trading against safe-haven currencies, the dollar rose against 0.16% to 145.78 yen, and the Swiss rose by 0.22% to 0.8806 francs.
At the same time, it fell against its US counterpart by about 0.09% to $0.6448, while the New Zealand dollar rose by about 0.18% against the US dollar to $0.5961, and the US dollar settled against its Canadian counterpart at $1.3479.
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