The euro was not able to take advantage of the positive news background which indicates the absence of strong buyers in the market. The euro zone unemployment fell by 0.2% by the end of July, indicating an economic growth that is a positive factor for the currency. The ISM manufacturing sector indicator has showed the lowest value since May 2013 which is a negative signal for the Fed. Despite these positive factors, the London sales ended with the euro decline which indicates the bears’ predominance in the market.
The pair GBP/USD has decreased. The British currency is showing weakness amid the fundamental factors. The debt market is also pessimistic about the British currency: the UK government bond yields declined significantly relative to its US and Germany counterparts. Nevertheless the pound strengthened by the end of the trades.
Earlier the pair USD/JPY has decreased. The world leading stock exchanges negative dynamics will contribute to the Japanese yen demand as a funding currency. The Japanese and the US government bond yields are increasing which is a positive factor for the dollar. By the end of the trades the pair dollar/yen slightly increased.Publication source