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Asian session review: the US dollar is showing positive dynamics

TimeCountryEventPeriodPrevious valueForecastActual
00:30JapanManufacturing PMIJune53.352.752.7
01:45ChinaMarkit/Caixin Manufacturing PMIJune48.150.151.7

During today's Asian trading, the US dollar rose moderately against major currencies.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, сanadian dollar, pound sterling and swedish krona) rose by 0.25%. On Thursday, the index declined by 0.33%.

Demand for the yen, dollar and US Treasuries is rising against the backdrop of investor risk aversion due to growing fears of a global recession, experts say.

Data published the day before showed a decrease in the growth rate of US household spending in May to the lowest level since the beginning of 2022 - to 0.2% from 0.6% in April. Consumer spending accounts for 70% of US GDP, and these data were perceived by markets as a negative economic signal.

However, the US dollar index ends the week with an increase amid signals of the Federal Reserve's readiness to continue tightening monetary policy.

Federal Reserve Chairman Jerome Powell said that the US economy is in a good position to cope with the tightening of monetary policy, and the central bank expects that it will continue to grow, but it cannot give guarantees of a "soft landing". Curbing inflation is likely to cause "some pain" to the economy, but "the pain will be worse if we can't handle high inflation," Powell said.

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