The US dollar strengthened for a fifth consecutive day on Wednesday, driven by robust US GDP and employment data, which prompted investors to abandon bearish dollar positions. Federal Reserve Chair Jerome Powell’s hawkish comments further bolstered the dollar by reducing expectations for a September rate cut.
Meanwhile, the euro weakened significantly after Germany reported negative GDP growth in the second quarter. The Japanese yen continued to decline, nearing key technical support levels ahead of a Bank of Japan meeting, while the Australian dollar fell sharply after inflation hit its lowest level since early 2021.
The Canadian dollar also dropped below 1.38, a level not seen since May, following the Bank of Canada’s decision to maintain rates while hinting at future cuts amid ongoing US criticism of trade talks with Canada.
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