The US dollar started the last trading session of this week on a strong footing but was unable to retain its strength to the end of trading. The currency is now broadly lower against other majors, falling more than 1 percent against the euro.
US economic data was weighing on the greenback, pushing it lower. Growth of the employment cost index slowed to 0.2 percent in the second quarter of this year from 0.7 percent in the previous three months, and the Michigan Sentiment Index dropped from 96.1 in June to 93.1 in July, trailing economists’ expectations. The only positive report was the Chicago Business Barometer that showed an improvement of all of its components.
Also weighing on the dollar was the report that showed unexpected acceleration of eurozone inflation. The positive data eased fears about the future of the euro-area economy, reducing demand for the greenback as a haven currency.
EUR/USD climbed from 1.0930 to 1.1047 as of 15:43 GMT today, reaching the high of 1.1113 intraday. GBP/USD advanced from 1.5599 to 1.5641 while USD/JPY declined from 124.12 to 123.87.
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