The US dollar strengthened against most major currencies on Friday as risk sentiment eased following a strong performance by US stocks. The S&P 500 index closed up 1.9%, its best day in a month, as investors digested a mixed bag of economic data. The US economy grew at an annualized rate of 2.3% in the second quarter, according to the Commerce Department, but consumer spending slowed.
The dollar index, which measures the US currency against a basket of six major rivals, rose 0.4% to 107.20. The euro fell 0.3% to $1.0690, while the Japanese yen weakened 0.2% to 137.65 per dollar.
The Australian dollar was the biggest loser against the dollar, falling 0.7% to $0.6870. The Aussie was weighed down by concerns about China’s economy, which is facing headwinds from a property slowdown and a regulatory crackdown.
The pound also fell against the dollar, down 0.4% to $1.1950. The pound was hurt by a weaker-than-expected UK manufacturing PMI reading.
Looking ahead, the focus will be on the release of US employment data on Friday. Strong jobs growth could further boost the dollar.
Here are some of the top forex movers today:
- EUR/USD: Down 0.3% to $1.0690
- USD/JPY: Up 0.2% to 137.65
- GBP/USD: Down 0.4% to $1.1950
- AUD/USD: Down 0.7% to $0.6870
- NZD/USD: Down 0.6% to $0.6825
What is the best forex trade today?
The best forex trade today is difficult to say as the market is very volatile. However, some traders may be interested in shorting the euro or the Australian dollar against the US dollar. These currencies are both seen as being vulnerable to further weakness due to concerns about their respective economies.
How was your Friday ?