Dollar Struggles Near Multi-Month Lows Ahead of Key PMI Data
The US Dollar (USD) continued its downward trend on Friday, staying near multi-month lows ahead of key PMI data releases. The currency struggled to stage a rebound and remained slightly above the three-month low it set near 98.50 on Thursday.
Despite the lack of high-impact macroeconomic data releases on Thursday, the US Dollar's selloff lost steam but failed to gather strength against its major rivals. Investors assessed the impact of the US Treasury Department's decision to boost long-term bond sales on the Federal Reserve's policy outlook.
A DBS Group Research economist noted that recent adjustments to US Treasury buybacks are unlikely to be a game-changer for markets, citing that tweaks around buybacks can only have a small, transient impact on markets. However, he also flagged geopolitical risks that could reinforce the Dollar's bid, including an expected tightening of US sanctions on Iran.
The UK's Office for National Statistics announced that Retail Sales declined by 0.5% on a monthly basis in July, while EUR/USD edged higher in the European morning on Friday and traded near 1.1700. Gold gathered bullish momentum to start the European session and traded at its highest level since late May above $4,550.