Euro Boosted by Weak US Economic Data, Dollar Weighed Down

The euro has shown resilience in New York trading against both the dollar and yen. On July 28th, the EUR/USD pair reached a fresh session high of 1.1387 dollars per euro after showing firmness throughout the day. The rise was fueled by weak US economic data, including a decline in long-term interest rates.

The release of the July US Consumer Confidence Index and Richmond Fed Manufacturing Index both fell short of market expectations. This led to a cautious outlook on the US economy, causing a decrease in US long-term interest rates and diminishing the dollar's appeal. The euro buying trend that followed was further supported by gains in cross-yen pairs like EUR/JPY.

The USD/JPY pair remained range-bound, trading between 163.64 yen to 163.95 yen during the New York session. However, it is expected to break through the strong resistance at 163.99 yen for any significant price movement.