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The U.S. Dollar Stabilized in Early European Trade

by Carl Steward
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Dollar is skyrocketing towards a new high. What about Yen? The U.S. Dollar Stabilized in Early European Trade

The U.S. dollar recovered in early European trade Thursday but remains around its two-decade high, owing to increased fears of higher interest rates and a worldwide recession.


The Dollar Index, which measures the value of the U.S. dollar against a basket of six other currencies, was unchanged at 104.873, not much from its recent 20-year high of 105.79.

Falling U.S. bond yields limited the dollar’s rise on Thursday. Still, the greenback remains in demand as a haven, with central bankers expressing the need to combat red-hot inflation even if it means a significant slowdown in global growth.


EUR/USD climbed 0.1 percent to 1.0442, with the single currency aiming to find its footing after losing nearly 0.8 percent versus the dollar on Wednesday, putting it on track for a 2.7 percent monthly slide and a 5.5 percent quarterly loss.

Despite a minor dip in food retail turnover, German retail sales improved in May, growing by 0.6 percent compared to the previous month but still representing a 3.6 percent drop year on year.


GBP/USD climbed 0.2 percent to 1.2148. Still, the sterling remains on track for its largest six-month loss versus the dollar, more than 10%, after Bank of England governor Andrew Bailey warned the U.K. economy was slowing. Still, inflation should rise further, stoking concerns about stagflation.

According to data from mortgage provider Nationwide, house prices in the United Kingdom grew slower in June than in May. However, the average price of a home still reached a new high.


USD/JPY slipped 0.2 percent to 136.35, retreating from a new 24-year high of just around 137.00 overnight, as the yen continues to be weighed down by the gap between a hawkish Fed and a dovish Bank of Japan.


The AUD/USD dipped 0.1 percent to 0.6883. In comparison, the USD/CNY rose 0.1 percent to 6.6975, aided by data showing that China’s factory activity improved in June for the first time since February, as officials removed COVID lockdowns in major areas like Shanghai.

The post The U.S. Dollar Stabilized in Early European Trade appeared first on forexinsider24.com.

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