Forex
Home›Forex›Major Pairs›Dollar holds gains after ECB keeps rates steady, PMI d…
Dollar holds gains after ECB keeps rates steady, PMI data eyed
The ECB left its deposit rate at 2.25%, and markets shifted attention to flash PMI readings for US manufacturing, services, and composite growth.
Markets recalibrated after the European Central Bank kept its benchmark interest rates unchanged, with the dollar continuing to draw support as investors looked ahead to US data. According to Yahoo Finance, the ECB maintained the deposit rate at 2.25%, the main refinancing rate at 2.40%, and the marginal lending facility rate at 2.65%.
The ECB said future decisions would be meeting by meeting and data dependent, while also flagging uncertainty around the inflation path given higher energy prices linked to Middle East escalation, per Yahoo Finance. With that shift, traders turned to S&P Global flash PMI surveys for the US, where manufacturing is seen at 54.5, services at 51.5, and the composite is expected to stay above the 50 expansion threshold.
The article also highlights the near term setup for the US outlook ahead of the Federal Reserve meeting next week, with the PMI figures expected to add evidence on the economy's resilience. In the same update, the US Dollar Index was described as remaining positive after bouncing in the 100.50 to 100.60 area and recapturing 101.20, with quotes around 101.33.
On other currencies, Yahoo Finance said the euro's focus was largely on the ECB's communication, including notes that inflation is easing but may not return sustainably to the 2% target soon due to energy price fluctuations. Sterling attention centered on June retail sales and flash PMI data for July, with manufacturing projected at 52.0 and services at 50.0.
Latest closeDollar index 101.47 ▲0.0%