The US dollar was not performing as well as one might have expected considering the prevalent safe-haven demand among investors. The possible reason for this may be that today’s economic data from the United States was a bit on the weak side.
The seasonally adjusted final reading of the Markit US Services Business Activity Index demonstrated a drop from 56.2 in May to 54.8 in June. The index of the services sector released by the Institute for Supply Management rose a little from 55.7 percent to 56.0 percent but was still below the market expectations of 56.5 percent.
As a result, the dollar did not perform particularly well, falling against the Great Britain pound and the euro. It is important to remember, though, that the shared currency of the eurozone opened sharply lower against the US currency, meaning that the bounce was not a sign of strength. The greenback managed to outperform the Japanese yen.
EUR/USD went up from 1.0990 to 1.1048 as of 19:00 GMT today after touching the daily high of 1.1095. GBP/USD rallied from 1.5543 to 1.5602. At the same time, USD/JPY rose from 121.88 to 122.43, though it also opened lower (like EUR/USD) after closing at 122.83 on Friday.
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