USD fell on the European market on Thursday against a basket of global currencies to deepen its losses for the fourth day in a row, recording a three-week low, as the European currency continued to improve at the expense of the US currency, especially in view of strong expectations for the normalization of monetary policy in the region The euro this year.
USD index fell 0.3% to 12: 00 GMT, trading at 93.27 points, the opening level of 93.54 points, the highest at 93.55 points and the lowest at 93.18 points, the lowest since May 17.
The index ended yesterday’s trading down 0.3%, the third consecutive daily loss, as US currency purchases fell in favor of the euro.
USD index lost less than 0.1% over the past week, its first weekly loss in the past seven weeks, on correction and profit taking from the six-and-a-half-month high recorded earlier in the week.
Euro continues its strong rally against the US dollar and most other major currencies, especially amid strong expectations for the ECB to normalize monetary policy this year, and this is in line with some central bank members’ comments on discussing the end of the monetary stimulus program at the bank meeting next week.
USD is also pressuring growing concerns over possible global trade tensions again at the G-7 meeting this weekend, as US President Donald Trump is expected to shock his counterparts with requests for trade protection.
US economy is expected to release an important labor market statement as of today. Unemployment claims are expected to reach 223,000 by the end of the week ending June 2nd.