Buck drops to lowest since end of May
The U.S. Dollar is trading is weaker ranges all across the board as poor domestic data figures mixed with risk-appetite sank the Buck to is weakest level overall since the end of May, per the Bloomberg Dollar Spot Index.
At the time of writing, the release of July Retail Sales surprised with an unexpected contraction of (-0.6%) instead of the estimated 0.1% expansion. Excluding Autos, there has been contraction for two consecutive months. This is a bad sign for general consumption. Later at 10AM, we will gauge Consumer Sentiment with the University of Michigan survey for August. Furthermore, yesterday’s 30-year bonds auction indeed produced the highest yield rate in 25 years, highlighting the premium demanded by investors to finance the national deficit.
Meanwhile, stocks keep their resilience and the enthusiasm behind artificial intelligence remains, which is also hurting the Buck. Investors seem to be now focused more on hardware and boosting those firms. Traders also wonder if Scott Bessent, the U.S. Treasury Secretary, is getting too involved with financial markets after vowing to keep aiding Japan in possible interventions while promising to foster Iran’s “economic isolation.” Seems like many factors are combining against the U.S. Dollar so definitely being tested for all currency pairs.
What to Watch This Week…
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The complete Economic Calendar can be found here.
EUR
The Euro is appreciating as a result of the weakening for the Buck because of bad economic indicators while Euro-zone growth is on the positive. Q2 Gross Domestic Product came in with a 0.4% advancement and now averaging 1.0% annually. Next week, the focus will be on inflation with July Consumer Price Index as well as Purchasing Managers Indices. If the data keeps showing progress has been made, expect Euro to keep rising and go beyond its strongest value since June. ade since the referendum.