On Friday, the dollar strengthened against other major currencies, as recent upbeat U.S. economic reports continue to support the U.S. currency, as investors await the upcoming release of employment report in the United States.
Dollar rises in anticipation of the employment report in the U.S.
The dollar gained support after the Labor Department reported that the index of the labor force cost grew by 0.7% in the three months to June, showing the growth at the fastest pace since September 2008, after an increase in the first quarter by 0.3%.
The report published the next day after official data showed that the U.S. economy has shown more growth than expected in the second quarter, renewing speculation about the timing of a possible rate hike. Euro is stable near eight-month lowest level, EURUSD pair fell by 0.05% to 1.3385. Earlier Market marketing research group informed that PMI in the manufacturing sector in Germany fell to 52.4 last month from 52.9 in June.
For the entire Eurozone, according to Markit, PMI for the manufacturing fell to 51.8 in July from 51.9 in the previous month. Analysts also expect that the index does not change. The single currency also remained under pressure after official data on Thursday showed that the annual inflation rate in the Eurozone slowed to a five-year low of 0.4% from 0.5% in June.
Report added pressure on the European Central Bank to implement further stimulus measures to support growth and stave off the threat of deflation in the region. Pound reached a six-month minimum, GBPUSD has lost 0.25%, falling to 1.6845.
Markit reported that the Purchasing Managers' Index in UK manufacturing fell to 55.4 last month from 57.5 in June. Analysts had expected the index falls in July to just 57.2. The dollar rose against the yen, USDJPY rose by 0.15% to reach 102.95, and remained stable in relation to the Swiss franc, USDCHF fell by 0.03% to 0.9085.