Dollar Loses Ground as Oil Prices Dive

The US dollar pulled back as oil prices dived by 4%, causing investors to reassess their demand for safe-haven assets. The US Dollar Index (DXY) lost ground, with traders focusing on the decline in WTI oil towards $88.00.

PMI reports from the US and EU also influenced currency markets. While the US Manufacturing PMI declined slightly to 53.8 in July, the Services PMI improved to 53.6, exceeding analyst forecasts.

The euro gained ground against the dollar as traders reacted positively to better-than-expected Euro Area PMI data. The nearest support level for EUR/USD is located at 1.1350-1.1365.

The British pound also moved higher due to stronger-than-expected UK Retail Sales and Manufacturing PMI reports, which exceeded analyst estimates.