Around 9:20 p.m., the greenback dropped 0.85% once morest the euro, at 1.0744 dollars. The single currency even came close to the one-month high reached on Monday.
The dollar fell once morest most major currencies on Thursday, hurt by weak US indicators and renewed risk appetite.
Around 7:20 p.m. GMT, the greenback dropped 0.85% once morest the euro, at 1.0744 dollars. The single currency even came close to the one-month high reached on Monday.
“The dollar’s recent comeback has lost momentum as market sentiment has improved, cutting appetite for safe assets,” Western Union’s Joe Manimbo said in a note.
The London market, the world’s leading place for currency exchange, was indeed operating at a slower pace, due to the two public holidays decreed, Thursday and Friday, to celebrate the jubilee of Queen Elizabeth II.
For Mazen Issa, of TD Securities, this perfume of adventure which perfumed the market was also due to the decision of the Organization of the Petroleum Exporting Countries (OPEC) and their allies of the OPEC + agreement to raise their price more than expected. production in July.
Even if the news did not prevent the price of black gold from rising, “it marks a turning point” for oil, which has been worried for several months regarding an insufficient supply, according to Mazen Issa.
Several currencies traditionally popular in times of upturn, such as the pound or the Australian dollar, rose on Thursday, like the Canadian dollar, which benefited from the Bank of Canada’s rate hike on Wednesday.
On the other hand, the dollar was weakened by the report of the ADP cabinet, which reported only 128,000 job creations in the private sector, less than half of what economists predicted (295,000).
Furthermore, the Ministry of Labor confirmed a drop in productivity in the first quarter and a rise in the average cost of labor that was higher than expected, once more for the first three months of the year.
“Macroeconomic developments are becoming more of a focus for the dollar,” noted Mazen Issa, with traders watching for signs of a slowing US economy.
For the same reasons that made it decline on Thursday, “the dollar might end its slide of the last two weeks if Friday’s employment report confirms that the job market remains solid,” according to Joe Manimbo.
Friday’s report, released by the US Department of Labor, has traditionally been much more closely followed than ADP’s.