Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Dollar edges lower, but remains elevated on global growth concerns

Published Sep 06, 2023 03:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
DXY
0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/USD
-0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/JPY
+0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
USD/CNY
+0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - The U.S. dollar edged lower in early European trade Wednesday, but remained near a six-month peak as global growth concerns weighed on risk appetite. 

At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 104.612, not far off the six-month high of 104.90 touched overnight. 

German factory orders slump; safe-haven dollar in demand

The dollar has given back some of its recent gains in early European trade Wednesday, but it remains near its highest levels since mid-March as a string of disappointing economic data releases resulted in traders seeking out this safe haven.

The weak data continued Wednesday, as German factory orders slumped 11.7% on the month in July, much weaker than the fall of 4.0% expected.

Manufacturing data from Germany, Britain and the euro area showed declines on Tuesday, while their service sectors fell into contraction. 

EUR/USD rose 0.2% to 1.0737, having breached a three-month low of 1.0705 overnight, while GBP/USD climbed 0.2% to 1.2582, having also touched a three-month low late Tuesday.

Eurozone retail sales set to confirm trend

Eurozone retail sales are due for release later in the session, and are  expected to have weakened in July, dropping 0.1% on the month in July, down 1.2% on an annual basis, as consumers in the region remain under pressure with inflation still elevated.

The European Central Bank meets next week, and a run of soft eurozone data has raised the likelihood that the bank’s officials will agree to a pause in the rate-hiking cycle, further weighing on the single currency.

The U.S. Federal Reserve is also seen holding steady later this month, with Fed Governor Christopher Waller saying on Tuesday the latest round of economic data gives the U.S. central bank space to see if it needs to raise interest rates again.

There is the release of ISM non-manufacturing PMI data later in the session which could provide more information about the health of the U.S. economy.

Yen remains near 10-month low

USD/JPY fell 0.3% to 147.27, with the yen recovering slightly from a 10-month low hit earlier in the session.

Japanese officials once again warned markets on betting against the currency, with top currency diplomat Masato Kanda telling reporters that the government “won't rule out any options” if speculation against the yen persists. 

Japanese authorities intervened to support the currency after it hit 30-year lows last year, and the market is awaiting similar action as the pair gradually heads towards the 150 level.

USD/CNY rose 0.1% to 7.3087, crossing the 7.3 mark and hitting its weakest level to the dollar since November 2022 as markets continued to fret over a slowing economic recovery in the world’s second-largest economy.

AUD/USD rose 0.1% to 0.6384, with the Aussie dollar helped by data showing Australia’s economy grew slightly more than expected in the second quarter, easing concerns over a recession.

 

Dollar edges lower, but remains elevated on global growth concerns
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
ISSIAKA Zerbo
ISSIAKA Zerbo Sep 06, 2023 7:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
1xbt
Ella Yassin
Ella Yassin Sep 06, 2023 4:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Usd soon will collapse... No value since not lean with reserve gold or.....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email