The US dollar has received support from domestic macroeconomic reports that led to a rally yesterday. Today, the currency halted its advance even though fundamentals continued to be supportive for the greenback.
With positive economic indicators, including rising retail sales and the improving consumer sentiment, the dollar had reasonable support. Additionally, the currency is bolstered by speculations that the Federal Reserve may hike interest rates as soon as September. Yet all the positive fundamentals did not help the greenback to rally today.
One of the likely reasons for underperformance is the rumors that Greece is close to settling a deal with its creditors. It is not the first time when markets hear optimistic speculations, and unless traders see any substantial evidences of a breakthrough in the talks optimism will likely wane quickly.
EUR/USD closed at 1.1254 after falling from 1.1257 to 1.1151 intraday. GBP/USD rose from 1.5517 to 1.5560. USD/JPY settled at 123.39, not far from its opening level of 123.41.
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