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Dollar gives up two-week high ahead of US data on major sectors
The dollar fell in European trade on Wednesday against a basket of major rivals, giving up recent highs scaled in Asian trade amid active profit-taking and under pressure from higher US 10-year treasury yields.
Now investors await crucial US data later today on major industrial and services sectors in July, which could provide fresh pricing for the odds of US rate cuts this year.
The Price
The dollar index fell by over 0.1% today to 104.37, with a session-high at 104.56, the highest since July 11.
The index closed Tuesday up 0.2%, the third profit in four days amid political developments in the US.
US Yields
US 10-year treasury yields declined by 0.6% on track for the second decline in a row, pressuring the greenback.
US Rates
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in September stand at 96%, and at 98% for November.
Major Sectors
Now investors await a swathe of important US data later today to better gauge the future of monetary policy.
The US manufacturing PMI is expected at 51.7 for July, up slightly from 51.6 in June, while the services PMI is expected at 54.7, down from 55.3 in the previous reading.
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