One of the factors influencing the behavior of the dollar was the surprising improvement in labor data in the US, which caused an increase in confidence in the economy and its currency.
He forex market scores his second stable day this Thursday, July 20, with the dollar showing different performances against several major currencies. Against the euro and the yen, the dollar was unchanged, but experienced a fall against the Australian dollar and the Chinese yuan.
One of the factors that influenced the behavior of the dollar was the surprising improvement in labor data in the US, which caused an increase in confidence on the US economy and its currency. As a result, the dollar is heading towards its first rise weekly in nearly a month against a basket of currencies, especially after gaining ground against the pound sterlingwhich suffered a depreciation of 2.3% due to the slowdown in British inflation.
He Australian dollar, for its part, registers a notable rise of 0.95% against the US dollar. This was due to employment beating expectations for two consecutive months in June, suggesting the possibility that the Reserve Bank of Australia increase interest rates in the near future.
As for the Chinese yuan, it experiences an increase against the US dollar of 0.65% in international markets. Chinese monetary authorities supported this currency by keeping lending references unchanged and increasing the cross-border financing ratio, which allowed domestic companies to seek funds in foreign markets.
Meanwhile, the dollar index, that measures the strength of the dollar against a basket of currenciesremained practically unchanged, although close to the minimum of the last 15 months.
the pound sterling continues its downtrend, rrecording its fifth consecutive daily drop. This came after British inflation data on Wednesday missed market expectations, raising concerns about the UK economy.
As for the euro, it maintains a stable position, trading at $1,120, with attention on the next policy meeting currency of the European Central Bank (ECB).
Finally, the japanese yen strengthens against the dollar causing a 0.2% drop in the dollar/yen pair, which settled at 139.44 yen.
In short, the outlook for the foreign exchange market was marked by varied movements of the dollar against different currencies due to economic events and monetary policy decisions in different countries. Investors kept an eye on news and events that could influence currency dynamics in the coming days and weeks.
Source: Ambito
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