The U.S. dollar index (DXY00) fell to a six-week low, down 0.91%, influenced by disappointing Q2 GDP growth of 1.5% (compared to an expected 2.0%) and a June core PCE price index decrease to 3.3% year-over-year. Additionally, U.S. weekly initial unemployment claims rose to 197,000, surpassing expectations of 200,000. The Federal Reserve’s decision to keep interest rates unchanged has further pressured the dollar.
In contrast, the Eurozone reported a better-than-expected Q2 GDP growth of 0.4% quarter-over-quarter and July economic confidence at a five-month high of 96.9, leading the EUR/USD to rise 0.48%. The German CPI for July also aligned with expectations, increasing to 2.8% year-over-year.
The Japanese yen surged 2.52% against the dollar, reaching a two-and-a-half-month high amid government intervention signals and improved consumer confidence. Meanwhile, gold prices rose 1.45%, attributed to the drop in the dollar and increased safe-haven demand due to escalating tensions in the Middle East.
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