Dollar Weakens as Traders Focus on Weak Economic Data From the US - Forex News by FX Leaders
Dollar Weakens as Traders Focus on Weak Economic Data From the US

Dollar Weakens as Traders Focus on Weak Economic Data From the US

Posted Wednesday, August 26, 2020 by
Arslan Butt • 1 min read

On Wednesday, the US dollar has weakened against major peers as traders focused on disappointing economic data releases from the US heightening worries about delayed recovery in the world’s largest economy. At the time of writing, the US dollar index DXY is trading around 93.14.

During the previous session, the US consumer confidence fell to an over six year low as a result of the rising unemployment levels. Later today, the US dollar could see some movement on the release of core durable goods orders, account key data point that showcases the state of the US economy.

The dollar is also trading cautious in anticipation of Thursday’s Jackson Hole symposium where Fed chair Jerome Powell is expected to reveal the central bank’s strategy to offer more support to the US economy that is reeling under the impact of the ongoing coronavirus pandemic.

Meanwhile, the Chinese Yuan strengthened to the highest levels in nearly seven months against the US dollar over optimistic comments from officials from the US and China about their renewed commitment towards implementing the phase one trade deal. The possibility of receding trade tensions between the world’s two largest economies has further dented the safe haven appeal of the greenback, sending it lower.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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