Against Dollar: Euro Jumps, Pound Near 7-Week Highs


The euro jumped more than 1% against the dollar on Friday, as growing concerns over slowing global economic growth bolstered expectations that the Federal Reserve may keep interest rates on hold for longer. The dollar tumbled against the euro and the yen after data showing manufacturing activity in China contracted at the fastest rate in six-and-a-half years in August added to concerns over the outlook for the world’s second-largest economy.

EUR/USD Hourly Chart


The pound ended the week near seven-week highs against the broadly weaker dollar on Friday, as concerns that slowing global growth could delay a U.S. rate hike pressured the greenback lower across the board. Wednesday’s minutes of the Federal Reserve’s July meeting indicated that there was little consensuses on when to start raising interest rates, prompting investors to push back expectations for a rate hike. Fed officials believe the economy is nearing the point where interest rates should move higher.

GBP/USD Hourly Chart


USD/JPY was down 1.12% to 122.03 late Friday, the largest one-day decline in six weeks. The US dollar index, which tracks the greenback against a basket of six major rivals, was down 0.97% to a five-week low of 94.84. In recent months, the dollar had been boosted by expectations that the improving U.S. economy would prompt the Fed to raise borrowing costs as soon as September. But mounting uncertainty over the global growth outlook and the subdued U.S. inflation outlook has seen investors push back expectations for an initial rate hike to December.

USD/JPY Hourly Chart

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