Dollar Fluctuates in Positive Territory

The U.S. Dollar (USD) is trading higher on Friday, maintaining a mostly positive performance against other currencies, in the absence of major economic data in the United States, other than the IHS Markit PMI.

The flash U.S. Composite Output Index declined to 59.7 in July, down from 63.7 in June, reaching its lowest level in four months.

The flash U.S. Services Business Activity Index also retreated this month to its lowest level in five months at 59.8, from 64.6 in June.

Meanwhile, the flash U.S. manufacturing purchasing managers’ index (PMI) rose to 63.1, up from 62.1 in

The flash U.S. manufacturing output index amounted to 59.5, from 58.9 in June.

A relative improvement in the investors’ risk appetite is capping the rise of Treasury bond yields, which in turn is limiting the gains of the greenback.

The USD has maintained a positive performance during the European session, and remains in the positive territory since the opening of the American session, despite erasing some of its earlier gains before rebounding.

The Dollar Index (DXY) that measures the greenback’s performance against a basket of six major international currencies is up by 0.11% at 92.928.

The index has been moving today in a range between 92.779 and 93.024, after closing Thursday at 92.822 and opening today at 92.806.

A decline by the British Pound (GBP) is amplifying the Dollar rise, with the GBP/USD pair trading lower 0.08%, after data showed a sharp slow in the UK economic growth as shown by the latest PMI reading.

Similarly, the USD is maintaining a positive performance against the Euro (EUR) adding about 0.1%, with the EUR/USD pair trading higher at 1.1761 with sharp fluctuations and movement mostly in a downward trend.

Meanwhile, the USD has limited its earlier gains to the Japanese Yen (JPY), the Canadian Dollar (CAD), whilst maintaining a positive trend against the Swiss Franc (CHF).