The dollar strengthened against most of its G10 counterparts on Thursday ahead of today’s US CPIs for July. The currencies that managed to resist the dollar’s strength were the safe havens CHF and JPY in what it seems to be a somewhat risk-averse market environment. Besides the US inflation data, Canada’s employment report is likely to gather extra attention as well.
GREENBACK GAINS AGAINST MOST MAJORS, SAFE HAVENS RESIST
The dollar traded higher against all but two of the other G10 currencies on Thursday. It gained the most against NOK, NZD and AUD in that order, while it traded virtually unchanged against the safe havens CHF and JPY.
The pattern suggests a somewhat risk-averse market environment, with the commodity-linked currencies AUD and NZD among the main losers and the safe havens CHF and JPY resisting the greenback’s strength. Indeed, equity markets support the notion as well. The S&P 500 and Dow Jones ended their trading slightly...
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