'King' USD Continues To Embed Major Currencies!

<p>&nbsp;The US dollar strengthened to a six-month high on Wednesday after being driven by risk-on market sentiment following concerns over global growth, particularly China.</p><p><br /></p><p>Against most major currencies, the dollar index, which measures the greenback's performance, traded higher at 104.85 during the Asian session.</p><p><br /></p><p>China's services activity expanded at the slowest pace in eight months in August, weighed down by weak demand.</p><p><br /></p><p>While the final reading for the European Zone's economic data remained unchanged, business activity fell into contraction, suggesting the bloc could be in recession.</p><p><br /></p><p>The streak, most of the currencies slipped lower in the European session and continued into the Asian session today.</p><p><br /></p><p>This weakness was reflected in the trading of the euro and the pound which fell further to the weakest level in three months against the US dollar.</p><p><br /></p><p><br /></p><p>While the Aussie and New Zealand dollars also sank to nine-month lows, while the Canadian dollar was the weakest in six months against the greenback.</p><p><br /></p><p>The decision of the Reserve Bank of Australia (RBA) on Tuesday saw the central bank decide to keep its interest rate unchanged at 4.10%.</p><p><br /></p><p>Despite gains against other currencies, the yen fell further against the greenback to its latest weakest level since November 2022, trading around 147.70 today.</p><p><br /></p><p>The yen was also weighed down by higher US 10-year bond yields, rising at 4.22% after the bond market reopened from a long holiday weekend.</p><p><br /></p><p>Market focus now shifts to the Bank of Canada (BOC) policy meeting and the release of US service PMI data in the New York session.</p>