The Dollar Rebounds From the Lows of 91.75
The US dollar has strengthened on positive economic data on Tuesday and Wednesday. The currency is recovering strongly from Tuesday’s lows. As a result of positive economic data, the dollar has increased on Wednesday. On Thursday, it was still supported by the sentiment of the US economic recovery. Still, the ADP National Employment Report has come out with a lower number than anticipated.
Because of the dollar recovery, the EUR/USD operated under pressure. On the other hand, traders experienced profit-taking by selling on the rally when touching 1.2000.
Australia reported a 7% contraction of its economy during the second quarter of the year, as it suffered from the coronavirus crisis. It is a more massive drop than that of the market’s 6% slide.
In Germany, retail sales decreased by 0.9 percent between June and July. In annual terms, German retail sales dropped by 3.3 percent in July. It is slightly less than the 3.4 percent decrease anticipated by the market.
According to the ADP private-sector employment report, the number of new private jobs created in August reached 428 thousand in the US. It is much less than the market expectation of 950 thousand jobs. Experts are now looking forward to the US employment release and its non-farm payroll report.
Tuesday’s and Wednesday’s economic data has had a positive influence on the dollar. It has rebounded strongly from the lows of 91.75. It increased to 92.50 and had been operating at levels as high as 92.75.
The DXY is priced at 92.72. It is a 0.44 percent rise so far in this session.
Despite lower than expected results of the ADP report, today’s release about employment data may be a stimulus for the dollar’s definitive recovery.
In the long term, the dollar is forecast to continue its downtrend.
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