© Reuters. Why did the US dollar fall for the third day in a row?
Arabictrader.com – The US dollar index fell clearly during trading today, Thursday, for the third day in a row, in light of the continuation of negative developments, which had a clear negative impact on its movements and weakened the demand for the US currency during currency market trading. The following are the most prominent influences on the dollar’s movements:
The release of the results of the US Federal Reserve meeting
The dollar was negatively affected by the issuance of the results of the Federal Reserve meeting yesterday, Wednesday, which included many negative points, which clearly weakened the demand for the US currency, as the results indicated that the majority of the Federal Reserve members consider it appropriate to slow down the pace of interest rate hikes, and that slowing down the pace of raising interest rates from That would better allow the FOMC to assess progress toward its targets given the uncertain delays around monetary policy.
Likewise, the results of the Federal Reserve meeting confirmed that a few members of the US Federal Reserve believe that slowing down the pace of raising interest rates can reduce the risks of the financial system, and also, members of the US Federal Reserve confirmed that the level that interest can reach has become more important, as he spoke Some reported the high risks of exaggerated monetary tightening, and this had a clear negative impact on the dollar’s movements.
Weak US bond yields weigh on the dollar
The US dollar declined due to the weakness of the US bond yields of all terms, as the 10-year bond yield settled near the level of 3.689%, down by 0.54%. Also, the 20-year bond yield decreased by 0.26%, to 3.9668%. At the same time, the yield on the 30-year bonds stabilized, recording about 3.725%, with an estimated decrease of about 0.45%, and this weakness in the bond yield clearly damaged the movements of the US dollar.
Negative economic data increases pressure in dollar trading
The US dollar was also affected by the negativity of some important economic data issued yesterday, Wednesday, as the data issued by the Markit statistics office indicated that the preliminary reading of the purchasing managers’ index in the manufacturing sector in the United States recorded a reading less than expected, as the preliminary reading of the PMI manufacturing index recorded about 47.6 points during last October, less than expectations that indicated a growth of the index by about 50.0 points. This was negatively reflected in the dollar’s movements.
How was the American affected by these developments?
In light of these negative developments and the weak demand for the dollar due to profit-taking operations, the US dollar index fell clearly, and settled below the level of 106 points, as it is currently trading near the level of 105.88 points, with a decrease of 0.20% and it awaits any new developments in the markets that may affect its trading. .
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