Dollar Weakness Fuels Euro and Gold Gains Amid Middle East Tensions
The US dollar is facing pressure due to the Treasury's plan to at least double the volume of long-term government bond buybacks. This move aims to contain rising yields on thirty-year bonds, but it has had a negative impact on the dollar itself.
Despite strong US economic data, including a significant rise in the composite business activity index and acceleration in services, market strategists are focused on fiscal risks rather than current growth.
The dollar's weakness is benefiting the euro, which is strengthening against the dollar for a fourth consecutive trading session. The eurozone's preliminary August business activity indices came in better than expected, with the composite reading rising and German manufacturing showing acceleration.