The U.S. dollar notched its lowest level since September 2016 on Monday’s opening bell. The market has gathered leveraged positions on currencies that are yielding and this lessened the risks of future monetary policy tightening in the United States.
The index that measures the value of the greenback against its major opposing currencies, the U.S. dollar index, hits a depressing 10-month low on the day at 95.089. However, it outperformed the Japanese yen at 112.49 yen on the previous session.
Meanwhile the euro lingered at $1.1471 at a resistance of $1.1489. Figures have been crowded with milestones with the British pound at its best level since September 2016 and the euro close to the bottom in May last year. Last Friday, sterling experienced its biggest jump in three months by 1.2 percent at $1.3107.
The public holiday in Japan kept a thin trading session as it was overwhelmed with the series of released economic figures from China. The data’s include retail sales, industrial output and gross domestic product (GDP). Economic growth in the region is expected to grow as much as 6.8 percent for Q2, which is considered as a healthy outcome.
The prior figures are contradictory to the released figures in the stateside last Friday which suggested an unexpectedly soft reading for retail sales and consumer prices. Still, this brought concerns on the U.S. Federal Reserve’s assurance that inflation will somehow return. According to ANZ economist David Plank, there is a possibility that the data’s will make the Fed cautious, adding that the odds of future interest rate hikes for 2017 have been lowered.