The currency retreated after momentum from healthy U.S. economic data faded.
He global dollarconsidered a safe haven, fell on Thursday due to growing risk appetite and as momentum from healthy economic data in USA, while the swiss franc rose after the country’s central bank cut interest rates by 25 basis points.
He dollar indexwhich measures the currency against the eurothe pound sterlinghe yen and three other major currencies, was down 0.42% at 100.52, following a 0.57% jump on Wednesday, its biggest one-day gain since June 7.
Meanwhile, the euro rose 0.41% to $1.1178, while the japanese yen It strengthened by 0.1% against the dollar and stood at 144.6 units per dollar. Furthermore, the pound sterling rose 0.71% to $1.3417, on track for its biggest daily percentage gain in a month.
In front of swiss franc, The dollar weakened 0.55% to 0.846 after the Swiss National Bank cut interest rates by 25 basis points, following action by the Fed and the European Central Bank (ECB), leaving the door open to more rate cuts as inflation cools sharply.
The impact of US unemployment data
The dollar began to reduce its losses after data showed that weekly claims unemployment in the United States fell by 4,000 to a four-month low of 218,000, below the 225,000 expected by economists polled by Reuters.
Other reports showed that corporate profits rose at a stronger pace than initially thought in the second quarter, while the gross domestic product grew at an unrevised rate of 3%.
An indicator of new orders capital goods Key U.S.-made supplies rose unexpectedly in August, although business spending on equipment appears to have slowed in the third quarter.
“Once again we have this divide between the Fed cutting rates and an economy that is essentially growing at 3% or more, so the market doesn’t quite know what to make of this,” he said. Joseph Trevisani, senior analyst at FXStreet in New York.
“So why are we cutting rates? Well, what do we have to lose? It’s not going to make the economy worse, it might make it better, and the neutral rate is somewhere below here, so let’s turn around and Let’s go in that direction.”
Source: Ambito
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