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Dollar slides as weak US growth and cooler inflation weigh

The US Dollar Index fell about 0.8% to around 100.00 after second-quarter GDP came in at a 1.5% annualized pace.

Reported · Written up by our desk · Major Pairs

The US dollar extended its sell-off after US economic data pointed to slower growth and moderated inflation, according to FXStreet. During the American session on Thursday, the US Dollar Index (DXY) dropped around 0.8% to near 100.00, slipping below the 100.00 level.

The report cited preliminary second-quarter GDP that expanded at a 1.5% annualized rate, below the 2.1% market forecast. It also highlighted core personal consumption expenditures inflation rising 0.1% month over month in June versus 0.2% expected, while the annual rate eased to 3.3% from 3.4%, even as the GDP price index jumped 6.3% versus 3.6% forecast.

FXStreet noted the data mix was not uniformly weak, with initial jobless claims at 197K versus 200K expected. The update also pointed to a sharp surge in the Japanese yen, which has fueled speculation about possible Japanese intervention, while it reported EUR/USD higher near 1.1530 and GBP/USD up near 1.3470 after a more hawkish Bank of England hold.

In FXStreet’s snapshot of major currency moves, USD/JPY fell about 2.4%, reflecting the yen’s rebound amid the intervention speculation. The brief also said eurozone growth beat expectations, with GDP up 0.4% quarter over quarter in the second quarter and annual growth accelerating to 1.0%.

Latest closeEUR/USD 1.153 ▲1.3%|USD/JPY 159.74 ▼2.5%|GBP/USD 1.347 ▲1.4%

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