US Dollar Remains Weak Despite the Release of Mixed US Data

The US dollar today remained weak against its main peers such as the British pound and the euro during the European session. The release of the positive core personal consumption expenditure and the US ISM employment data boosted the greenback slightly during the North American session.

The US Dollar Index, which tracks the greenback’s performance against its main peers, was trading above its opening price of 92.89 at the time of writing. This indicates slight greenback strength during the North American session.

The release of the US core personal consumption expenditure for the month of June by the Bureau of Economic Analysis boosted the US dollar slightly; the PCE came in at an annualized figure of 1.5%, versus the expected 1.4%. The US ISM prices paid also exceeded expectations by coming in at 62, which was above the market consensus of 55.8. The US ISM manufacturing index for July was slightly below expectations as it was recorded at 56.3 as compared to the expected 56.4. The ISM employment index came in at 55.2, which is in line with the half-year average, indicating positive jobs growth.

The month-on-month construction spending figures released by the Census Bureau were way below expectations, which weighed down the greenback. The political upheavals in Donald Trump‘s administration such as the firing of Anthony Scaramucci also weakened the US dollar.

The greenback’s future performance is likely to be affected by the release of the ADP employment change report scheduled for tomorrow.

The EUR/USD was trading at 1.1798 as at 16:03 GMT having dropped from a high of 1.1839. The USD/JPY was trading at 110.34 having rallied from a low of 109.91 earlier today.

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