US Dollar sinks after US PMI's reveals US outperformance stalls
The US Dollar Index (DXY), which tracks the performance of the US Dollar against six different major currencies, is sinking back below 107.50 in an eventful Friday, facing an intraday loss on Friday after US President Donald Trump left surprised with comments the previous day casting doubts on the application of tariffs on China. The comments came after Trump had a phone call with China’s President Xi Jinping. Meanwhile, the Bank of Japan (BoJ) hiked interest rates by 25 basis points, which triggered substantial losses for the US Dollar (USD) against the Japanese Yen (JPY).
In the economic data front, Markit has already released Germany’s Purchasing Managers Index (PMI) preliminary readings for January, with some strong upbeat numbers, fueling more Euro (EUR) strength against the US Dollar (USD). Later this Friday, the US has received its S&P Global PMI preliminary readings for the same month. The Services component, which is the most important one, missed its estimate and came in softer than the month before.
Source: FXstreet