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