The U.S. dollar experienced a strengthening trend on Thursday because of better-than-expected retail sales data for June and decreasing jobless claims even though the previous day’s market experienced volatility from Federal Reserve leadership speculation. President Donald Trump denied any plans to remove Fed Chair Jerome Powell which brought market stability and reversed the dollar’s earlier decline.
The greenback has experienced a monthly increase because of rising Treasury yields and analysts attribute this to short covering following the major first-half market decline. The dollar index shows a 9% decrease in its value throughout the current year.
The value of sterling decreased following reports of weak UK wage and employment statistics while Japan’s yen declined because of rising political uncertainty before the upcoming election. The upcoming election shows Prime Minister Shigeru Ishiba’s coalition faces a potential loss of upper house majority control which would make a U.S. trade agreement uncertain. The yen experienced a 0.46% decline to reach 148.56 per dollar.
The Australian dollar declined following reports of poor labor market statistics which led to unemployment reaching its 2021 peak. Bitcoin experienced a 1.26% decline which brought its value down to $118,425.
