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Following dismal Chinese figures, the dollar gains around three-month highs

05 Sep,2023
Following dismal Chinese figures, the dollar gains around three-month highs

The greenback ticked up on Tuesday, as traders flocked to this safe haven after weak Chinese services activity dampened risk-taking attitude.

The US dollar index advanced by 0.3% at 104.382, hovering near to the highest level in three months.

The second largest economy in the world, China, experienced its slowest growth in services activity in eight months in August, according to data released earlier on Tuesday. Beijing's stimulus measures have so far failed to significantly boost the country's economy.

In August, the Caixin services purchasing managers' index increased by 51.8, which was less than the 53.6 reading that was predicted and the 54.1 reading from July.

While the U.S. central bank is anticipated to maintain stability in interest rates, it is also anticipated that it will repeat its intentions to maintain higher rates for longer.

EUR/USD slipped 0.3% to 1.0764 prior to the release of the final August eurozone activity figures, which is anticipated to show a weaker than projected performance of the region's economy.

GBP/USD dipped 0.3% to 1.2584, the U.K.'s composite PMI is likewise predicted to decline, reaching 47.9 in August from 50.8 the month before, entering contraction zone.

USD/JPY edged up by 0.3% to 146.93, the pair is likely headed towards the 150 level, with the price being just below a one-week high.

 

 

 

 

 

 

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