US Dollar Index Recovers After Recent Selloff

The recent news of yuan devaluation took its toll on the greenback, but now the US dollar is coming back, thanks in part to helpful economic data.

Yuan devaluation helped prompt a selloff in the US dollar, but now the greenback is making a comeback. The latest retail sales data for July indicate solid consumer demand and spending. Hopes that the US economy will keep moving forward — and that the Federal Reserve won’t delay rate hikes — are helping the greenback right now.

US dollar is higher against most of its major counterparts and the dollar index is heading higher as well. Many Forex traders and analysts are still keeping an eye on China, however, since the PBOC has devalued the yuan again. While officials brush off speculation of a 10 per cent devaluation, many are still watching the situation closely, and the performance of the greenback could be impacted.

At 15:11 GMT the US dollar index is up to 96.5970 from the open at 96.3500. EUR/USD is lower, dropping to 1.1141 from the open at 1.1158. GBP/USD is also lower, falling to 1.5588 from the open at 1.5613. USD/JPY is gaining to 124.3800 from the open at 124.2150. USD/CAD is also higher, moving up to 1.3070 from the open at 1.2977.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *