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Dollar slips below 100 as weak growth and eased inflation weigh

The US dollar index fell about 0.8% after second-quarter GDP missed forecasts and core PCE rose 0.1% month over month in June.

Reported · Written up by our desk · Major Pairs

The US dollar extended its sell-off in the American session on Thursday, pressured by economic growth that came in below expectations and by moderation in underlying inflation, FXStreet said in its Forex Today update for Friday, July 31.

In the US data, preliminary second-quarter GDP rose at a 1.5% annualized rate, below the 2.1% market forecast, while core personal consumption expenditures increased 0.1% month over month in June versus 0.2% expected and eased to a 3.3% annual pace from 3.4%.

Additional signals were mixed, with initial jobless claims at 197K, below the expected 200K, and the GDP price index jumping 6.3% compared with 3.6% expected, suggesting inflation pressures remain elevated even as growth slows.

The move also coincided with a sharp surge in the Japanese yen, which helped drive USD/JPY down about 2.4%, while EUR/USD rose about 0.5% to around 1.1530 and GBP/USD climbed about 0.8% to roughly 1.3470 following a more hawkish Bank of England hold.

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

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