Forex News

The fall of the US dollar against the background of a review of US GDP growth in the direction of lowering

The US dollar fell compared to its largest counterparts in the European session on Thursday, after data indicating a downward revision of US economic growth in the first quarter and an increase in initial applications for unemployment benefits in the United States for the week ending June 23.

The Department of Commerce data showed that the real gross domestic product in the first quarter increased by 2.0 percent compared to the previous estimate of 2.2 percent. Economists had expected that GDP growth rates would not be reduced.

Data from the Department of Labor showed an increase in the number of initial applications for unemployment benefits in the United States for the week ending June 23.

The report says that the initial applications for unemployment benefits rose to 227,000 people, an increase of 9,000 people compared to 218,000 the previous week. Economists had expected jobless claims to reach 220,000.

The currency rose during European trading amid uncertainty about US trade policy.

Investors appreciated the controversial reports from US President Donald Trump and his assistants, will it adopt a confrontational approach to limit China's investment in America.

The dollar traded at 1.1587 per euro, compared to the weekly high of 1.1527 observed at 2:30 am ET. If the dollar continues to fall, 1.17 may be seen as the next level of support.

European Commission data showed that economic confidence in the eurozone worsened in June.

The economic sentiment index fell to 112.3 in June from 112.5 in May, but remained above the expected 112.0.

The dollar retreated to around 110.07 against the yen, from a high of 110.42. On the other hand, 108.00 is most likely seen as the next level of support for the dollar.

Data from the Ministry of Economy, Trade and Industry showed that retail sales in Japan fell sharply in May, signaling weak consumer spending.

Retail sales in May fell by 1.7 percent compared to the previous month, which is 1.3 percent more than in April. It was expected that sales would decrease moderately by 0.8 percent.

The dollar held steady at 0.9974 against the franc, after falling from a 5-week high of 0.9992 reached at 3:00 am ET.

The dollar fell to a 3-day low of 1.3275 against the lunis and remained stable after that. The pair was valued at 1.3341 when it closed deals on Wednesday.

On the other hand, the dollar fluctuated around a 7-1 / 2-month high of 1.3066 against the pound, compared to 1.3111. The next key resistance for the dollar is likely to be at 1.29.

The dollar rose to more than 2-year high of 0.6752 against kiwi at 5:15 am ET. At yesterday's close, the pair was worth 0.6795.

The Reserve Bank of New Zealand maintained its official cash rate at a record low of 1.75 percent. This decision met expectations.

RBNZ Managing Director Adrian Orr said that the bank has good opportunities to manage changes in any direction – up or down – as necessary.

The dollar declined to 0.7330 against the Aussie. The Aussie-dollar pair finished trading on Wednesday at the level of 0.7338.