USD Stronger After China Stimulus And US Data

The dollar edged higher against the euro and yen Wednesday after official data showed an unexpectedly large increase in the sale of durable goods by U.S. companies in July.

The WSJ dollar index , a broad measure of the dollar’s strength, was up 0.6% to 87.85, on track to rise for a second consecutive session.

Chinese stocks edged lower Wednesday during the Asia trading session, but a decision by Chinese policy makers to pump 140 billion yuan into the financial system helped calm nervous markets and push the dollar higher.

The U.S. dollar has been particularly sensitive to market turmoil in China over the past week, as investors debate whether trouble in the world’s second-largest economy might prevent the Federal Reserve from raising the fed-funds rate, its benchmark interest rate, in September.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza