Investing

Forex – Weekly outlook: July 24

© Reuters. U.S. dollar falls to lowest level in over a year

Investing.com – The U.S. dollar fell to its lowest level in more than a year against a basket of the other major currencies on Friday, pressured lower by the stronger euro and persistent concerns over U.S. political uncertainty.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, ended down 0.32% at 93.78, the lowest close since June 22, 2016.

The index ended the week down 1.32%, marking its second straight weekly decline.

The euro rose to its highest level in nearly two years against the dollar, with hitting highs of 1.1683, the most since September 2015. It was last at 1.1663, having gained 1.65% for the week.

The euro was propelled higher by expectations that the European Central Bank is moving closer to tapering its bond-buying program.

On Thursday, ECB President Mario Draghi said in the fall.

The dollar was also hit by fresh political turmoil in Washington.

On Thursday, Bloomberg reported that in last year’s election is extending into his business.

Earlier in the week, Republican lawmakers pulled the plug on the latest version of a contentious bill to replace Obamacare, delivering a major policy blow to the Trump administration.

The indicated that Trump’s other legislative efforts, such as overhauling the tax code and implementing fiscal stimulus could face difficulties.

Hopes for tax reforms and fiscal stimulus under the Trump administration helped drive the dollar to a 14-year high after the November election. The dollar has now given up all of its post-election gains.

Doubts over the Federal Reserve’s plans for a third rate hike this year have also fed into dollar weakness. The Fed is to hold its on Wednesday and is widely expected to hold policy steady.

Against the yen, the dollar fell to a more than one-month low of 111.02. was last at 111.12.

Sterling was a touch higher against the dollar, with rising 0.15% to 1.2993 late Friday.

, investors will be awaiting the outcome of Wednesday’s Fed meeting, ahead of data on Friday which will give the first look at U.S. second quarter growth.

Survey data from the euro zone on Monday will help gauge the strength of the ongoing recovery in the euro area. The UK is to release data on second quarter growth on Wednesday.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, July 24

The euro zone is to publish survey data on private sector business activity.

Canada is to report on wholesale sales.

The U.S. is to release figures on existing home sales.

Tuesday, July 25

The Ifo Institute is to report on German business climate.

The U.S. is to release data on consumer confidence.

Wednesday, July 26

Australia is to release data on consumer price inflation.

The UK is to release preliminary data on second quarter economic growth.

The U.S. is to report on new home sales.

The Fed is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.

Thursday, July 27

The U.S. is to release data on jobless claims and durable goods orders.

Friday, July 28

In the euro zone, Germany is to release preliminary inflation data.

Canada is to release monthly data on economic growth.

The U.S. is to round up the week with advance data on second quarter growth.

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