The US dollar declined against the euro on Friday to touch its weakest level in 3 days, as fresh data for inflation rate in the United States disappointed investors. Weak economic releases in recent weeks lowered expectations that the Federal Reserve might raise interest rates before the end of the year, which weighed on the greenback.
The US dollar surged against the euro and other major counterparts on Friday, as the economy in the United States created more jobs than expected in July. The gap between US imports and exports narrowed in June, which pushed an index that tracks the greenback’s strength toward its best level in 7 trading sessions.
The US dollar weakened against the euro on Thursday to remain near its lowest level in almost 3 years. A fresh data release that revealed lagging business activity in the United States added to mounting evidence that economic growth is losing momentum, which weighed on the greenback.
The US dollar fell against the euro on Wednesday, as uncertainty between traders about the labor market increased following disappointing employment data today. The greenback also declined against a basket of major currencies amid lower expectations for the official job report on Friday.
The Australian dollar rallied today, following yesterday’s policy statement from the Federal Reserve. The currency struggled to maintain gains, though, as today’s macroeconomic data was unfavorable.
The Canadian dollar gained to the highest level in two years versus its US counterpart today after the Federal Reserve released a relatively dovish policy statement. The loonie also rallied against the weak Swiss franc but dropped versus the euro and Japanese yen.
The US dollar edged higher against the euro on Wednesday, ahead of the latest statement from the Federal Open Market Committee, which is expected to contain a decision to keep rates unchanged. Traders appear to have ignored a disappointing number for new home sales in June in anticipation for remarks from the monetary policy committee relating to interest rates in the near future.
The US dollar edged higher against a basket of major currencies on Monday ahead of the Federal Reserve’s monetary policy meeting that starts tomorrow. The greenback was able to maintain today’s gain even after a report revealed disappointing existing home sales in June.
The US dollar ended the week as the weakest major currency after Federal Reserve Chairwoman Janet Yellen made dovish comments, making speculators pare bets on an additional interest rate hike this year.
The EUR/USD currency pair today remained unchanged despite market rumors that the European Central Bank President, Mario Draghi, would include QE tapering in his Jackson Hole meeting next month. Janet Yellen‘s dovish comments during her two-day Humphrey-Hawkins testimony before Congress had a negative impact on the US dollar, which has been largely weaker against the euro in today’s session.
