Expanding its gains for the third straight trading session to reach its highest close since Late-July 2017, the US Dollar rose amid the speculation over the next pick for the Federal Reserve Chair following the US President Donald Trump statement that he is “very, very close to making his decision.”.
The pick is largely speculated to either Jerome Powell or John Taylor with both being more hawkish than current Federal Reserve Chairwomen Janet Yellen, thus adding to investor’s optimism.
Moreover, the positive US Manufacturing Purchasing Managers' Index numbers add further to the US Dollar strength.
The US Dollar Index, which measures the strength of the US Dollar against a basket of major currencies, ended higher for the third straight trading session to settle at its highest close since Late-July 2017 at 93.95.
Meanwhile, the European Euro gained slightly following its sharp declines in the past two trading sessions to settle higher at 1.1760 but well below the session’s far high. This gain was limited due to the mixed Manufacturing Purchasing Managers' Index data, the situation in Spain as well as the technical resistance levels.
The Great British Pound witnessed its worst decline in one week to settle at its lowest close since the mid of October 2017 at 1.3135 ahead of today’s GDP data as well as stronger US Dollar.
Moreover, the Deputy Governor of the Bank of England Jon Cunliffe said that the timing of a rate hike is “an open question.” that placed further pressure on the currency.
Japan’s Yen weakened against the US Dollar to settle at its weakest in several months at 113.89 duo to yesterday’s early trading session poor Manufacturing Purchasing Managers' Index.
Both the Australian and New Zealand Dollars traded lower against their US counterpart, with the Australian Dollar settling lower at 0.7775 and the New Zealand Dollar ending at its several months’ low at 0.6906.
The Canadian Dollar settled at 1.2675 the pair’s highest in several weeks.
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