The US dollar fell to three-week lows on Thursday, as the euro gained on strong German industrial orders, while data showing jobs rose less than expected in June plus nagging concerns about global trade also reined in the greenback’s recent rally.
Mazen Issa, senior FX strategist, at TD Securities in New York said US economic prospects remain upbeat compared with the rest of the world, but that advantage could be running its course.
“Early flow data has corroborated a return to US dollar assets, but this could be challenging in the coming months if growth abroad stabilizes and twin deficits becomes topical again,” Issa said.
“For now, euro/dollar looks poised to test key resistance.”
The euro climbed after German industrial orders had a higher-than-expected jump in May following four consecutive monthly drops, as demand from domestic customers and the rest of the euro zone picked up.
At the same time, there has been a softening in US trade…