USD Is Still 'Poisonous', The New York Session Is The Next Decisive!

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 The US dollar continued to take advantage of positive US economic data to maintain its strength at the highest level against major currencies.


Earlier, the ISM services PMI report showed that business activity in the US services sector continued to expand strongly in August.


This in turn encourages investor expectations that the Federal Reserve (Fed) will maintain high interest rates for a longer period.


The benchmark 10-year US bond yield rose to 4.3% and gave the USD a boost after the data.


Investors' focus next turned to the US jobless claims report and Fed policymaker Patrick Harker's speech at the New York session today.



Looking at the development of other currencies, the euro and the pound continued to trade weakly at three-month lows against the US dollar in the European session.


While testifying before the UK Treasury Select Committee, Bank of England (BOE) Governor Andrew Bailey said many indicators point to a decline in inflation and interest rates are also nearing a peak.


Meanwhile, the Asian session was highlighted by China's trade data which continued to show weakness with imports and exports each recording a fall in August.


The Aussie and New Zealand dollars continued to hover around 10-month lows against the greenback despite slight gains in the European session.


In addition, the yen continued to struggle around its weakest level since November, seeing it trade dismally at around 147.45 against the US dollar.

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