Forex
Euro Slips as Strong US Business Data Supports Greenback
The US Dollar (USD) strengthened against the Euro (EUR) on Friday as strong business activity data supported the Greenback. The preliminary S&P Global Composite Purchasing Managers’ Index (PMI) rose to an eight-month high of 53.6 in July, while the Services PMI climbed to 53.6 from 51.2.
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 101.42. This is after retreating from an intraday low of 101.25.
TD Securities noted that the ECB left the deposit rate on hold at 2.25%, with the statement and press conference continuing to flag inflationary pressures. The bank stressed the need for a meeting-by-meeting approach, thereby leaving the door open for a September hike.