EUR/USD Pair Loses Momentum as Stronger Dollar and Economic Data Weigh In
The US Census Bureau reported that Durable Goods Orders in August improved by 0.2% month-on-month (m/m) following a 5.6% decline in the previous reading.
The US Census Bureau reported that Durable Goods Orders in August improved by 0.2% month-on-month (m/m) following a 5.6% decline in the previous reading.
China keeping the fiver-year loan rates unchanged has put breaks on the five weeks rally in the US Dollar. Investors now wait for the Federal Reserve’s Jackson Hole symposium for any further guidance.
Amid mounting debt-limit default risks, US investors have turned to Bitcoin as ‘digital gold’ to better hedge their savings.
More observers are growing bullish on the euro this year despite its relative slump against the US dollar in 2022.
The government said it will also be buying securities with a much shorter tenor as its measures are pegged at stability in both the long and short term.
The British Pound is not alone in its slump against the United States Dollar as other currencies including the Euro are also recording a similar faith.
The escalating inflation, currently at the highest level among all G-7 nations, the impending recession, and concerns about tax cuts has been the driving factors pushing the Sterling down the slope.
The US dollar is globally recognized as a safe haven, and so the recent market condition has increased demand for the currency.
While inflation worries remain persistent in the UK, recent data on business activity turned out to be better than preliminary estimates.
The Eurozone’s inflation data came in at 8.6% in June, a figure that has prompted the European Central Bank (ECB) to give advance notice to market stakeholders of its intentions to hike interest rates.