The dollar once hit a five-week high, and the market is waiting quietly for the release of significant economic data from the United States.
The US dollar index rose to a five-week high as the market speculated that a series of US data releases would further demonstrate the strength of the economy. The Bloomberg Dollar Spot Index rose 0.3% at one point, reaching its highest level since June 23, with the US dollar strengthening against all G-10 currencies. The euro fell, reaching its lowest level in over a month, as concerns grew about the impact of the recent US-Europe trade agreement on the economy. The US consumer confidence index for July is expected to improve, and JOLTS job vacancy data will be released on Tuesday. The Federal Reserve is expected to hold steady on Wednesday, while economic growth and inflation data continue to reinforce a positive economic trend. "At least for now, the focus of the foreign exchange market participants has shifted from trade uncertainty to the strength of the US economy," said Derek Halpenny, global market research director at Mitsubishi UFJ Financial Group. "This is obviously helping to prompt the closure of some of the short US dollar positions that had accumulated in the first half of the year." The US dollar has regained some lost ground this month as traders have gained a clearer understanding of President Trump's tariff policies.
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