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The US dollar soared 2.5% in a single week! There is still room for the six consecutive positive moments, and non-US currencies collectively "battle royale"!
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange]: The US dollar soars 2.5% in a single week! There is still room for six consecutive positive moments, and non-US currencies collectively "battle royale"!". Hope it will be helpful to you! The original content is as follows:
On Friday (August 1), the US dollar index consolidated narrowly above the 100-day moving average and the July 30 high of 99.968. It is now trading around 100.063. The US dollar index has risen for six consecutive days. The improvement in core US economic data provides support for the Federal Reserve's policy formulation, and www.xmspot.combined with the market's optimistic expectations for non-agricultural data, it pushes the US dollar index to maintain a strong range. The S&P 500 index fell for the third consecutive trading day. As the U.S. tariff deadline approaches, Trump has issued a series of new tariff measures and will set new tariffs before midnight. The Dow Jones Industrial Average fell 330.30 points, or 0.74%, to 44,130.98 points; the Nasdaq fell 7.23 points, or 0.03%, to 21,122.45 points; the S&P 500 fell 23.51 points, or 0.37%, to 6,339.39 points.
The US dollar leads strongly, setting its best single-week performance in the past three years
The Trump administration of the US announced new tariff rates for dozens of trading partners such as Canada, coupled with market expectations for Federal Reserve policies, pushing the US dollar to strengthen. The US dollar index is expected to rise 2.5% this week, its best single-week performance since September 2022 (up 3.1%);
The US dollar index rose to 100.14 during the Asian session on Friday (August 1). The US dollar index rose to a high of 100.14 to hit a new high since May 29.
The US dollar held its momentum against major currencies and hit a new high.
The yen fell under pressure, triggering a warning from the Japanese government that the Bank of Japan stated that it was not in a hurry to resume interest rate hikes, resulting in the yen continuing its decline.
Japan YenIt hit a four-month low against the dollar at 150.725, falling to 150.915 earlier (the lowest since March 28).
Japanese Finance Minister Katsunobu Kato said the authorities were concerned about the recent exchange rate trend.
Tariff policy impacts multi-national currencies
Canada: Tariff rate has increased from 25% threat to 35%, and the Canadian dollar fell 0.12% to 1.3872, the lowest since May 22.
Swiss: Tariffs on Swiss imported goods were set at 39% (up from 31% previously brewed), and the Swiss franc fell 0.26% to 0.8120.
Asian Currency: Philippine Peso fell to six-month low; the won was hit to levels since mid-May despite a trade deal in South Korea on Wednesday.
Euro: The euro remained near 1.1412 against the last two-month low, close to a new low of 1.1401 since June 10, dragged down by the adverse interpretation of the US-EU trade agreement.
Short-term focus US non-farm data
The United States will release July employment data on Friday (August 1). Economists predict 110,000 new jobs. Some analysts believe that if it meets expectations, it may be the economic result of the "Blonde Girl". It is feasible to resume interest rate cuts without causing market panic. Note: "Blonde Girl" originates from the concept of "lucky, just right" in the fairy tale "Blonde Girl and the Three Bears".
Although Trump criticized Fed Chairman Powell overnight, saying his appointment was "wrong", the Fed kept its policy unchanged on Wednesday, citing "slightly rising" inflation and "stable" labor market.
Mike Houlahan, director of Yichuang Financial Management, believes that the US dollar may further strengthen in the short term, and the impact of tariff news has been partially digested; this week's downgrade of the euro rating and the unfavorable factors of the US-EU trade agreement put further pressure on the euro.
Technical: The US dollar has risen strongly to 100.87
The US dollar has risen continuously for 6 trading days, breaking through the double bottom pattern, and consolidating strongly above the July 30 high and above the 100-day EMA. The double bottom pattern has increased by 100.87.
If the first support is weak, it will look at 99.44 as the highest price on June 23 and the long positive line on July 30.
RSI and MACD both show that the dominance of the multi-party continues to rise.
The above content is about "[XM Forex]: The US dollar soars by 2.5% in a single week! There is still room for six consecutive positive moments, and non-US currencies collectively "battle royale"!" is carefully www.xmspot.compiled and edited by the editor of XM Forex. I hope it will be helpful to your trading! Thanks for the support!
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