Let us check changes in the United States and the Market, where the virus hampered recovery. Thus, the dollar was broadly weak. Euro was on a 16-month high vs. yen, and near 2-peak vs. the dollar. Investors are waiting for the upcoming jobs data.
There are worries that the United States economic recovery may lag other countries because of a high level of coronavirus infections. Moreover, investors look to upcoming data on the United States labor market. Thus, on Thursday, the dollar struggled.
Against a basket of currencies, the dollar’s index stood almost flat at 92.814. It has fallen more than 0.5% in the previous session to approach its two-year low of 92.539 marked last Friday.
Shinichiro Kadota works at Barclays. He is a senior strategist there.
A decline in the United States currency has gathered pace since late July. It was because of the growing perception that the United States economic recovery could be hobbled by the country’s poor performance in containing the COVID-19 outbreak.
Dollar and Others
The euro changed hands at $1.1869. Moreover, in the previous day’s trade, it gained 0.5% to stand just below Friday’s two-year high of $1.1908. It extended its bullish run since European leaders mande a deal on a recovery fund on July 21.
Against the yen, the euro held an upper hand, trading at 125.25 yen. It had hit its highest since April last year in the previous session.
The United States dollar slipped a tad to 105.52 yen.
Data showed that the United States’ private payroll growth slowed sharply in July. It suggested the labor market recovery was faltering. In the previous session, the dollar extended losses.
Also, a separate survey by the ISM (Institute for Supply Management) showed the United States services industry activity gained momentum in July. It was because new orders jumped to a record high.
That is the current news of the global market.