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18/07/24
153
USD Inches Higher After Previous Losses
On Thursday, the U.S. dollar inched up, while the euro dropped before an ECB meeting and sterling dropped as wage growth in the U.K. slowed.
The U.S. dollar index, which measures its strength against 6 other major currencies, traded 0.1% higher at 103.550, bouncing after this week losses on increased expectations that the Fed would cut interest rates in Sept.
On Thursday, the dollar bounced after declining to the lowest level since March on Wednesday.
Expectations that the U.S. Federal Reserve would begin cutting interest rates at its meeting in Sept., to bolster the slowing economy, has weighed heavily on the dollar.
Economic data due later today is likely to show weekly initial jobless claims had increased, while the Philadelphia Fed manufacturing index is on track to show a slight improvement in conditions.
GBP/USD traded down 0.2% lower to 1.298 after data showed that growth in UK wages in May slowed but stayed at high levels.
Data showed that average weekly earnings – a key measure of inflation pressure for the BoE – rose by 5.7% in the three-month period that ended in May, versus a year earlier.
This was a drop of 6.0% from the prior month and led to money markets increasing the odds of an interest rate cut next month.
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