Uncertainty At The End Of July, Where Will The USD Go?

<p>&nbsp;Towards the close of the July market, the US dollar moved in a limited trading range as prices continued to hover around the same zone.</p><p><br /></p><p>This is reflected in the dollar index which is trading at around 101.70 against a basket of major currencies.</p><p><br /></p><p>In the absence of major economic data releases from the United States in the upcoming New York session, the US dollar is expected to continue to exhibit the same movement.</p><p><br /></p><p>Even so, investors need to remain cautious considering that today is the closing of July trading which may be affected by profit taking activities.</p><p><br /></p><p>Examining the development of other currencies, the euro traded little changed following the European Zone inflation data report which showed the consumer price index decreased to 5.3% in June from 5.5% previously.</p><p><br /></p><p><br /></p><p>Meanwhile, core inflation was unchanged from the previous record with an increase of 5.5% in June.</p><p><br /></p><p>Meanwhile, the pound traded flat amid investor caution ahead of the Bank of England's (BOE) policy meeting on Thursday.</p><p><br /></p><p>Also, the Aussie and New Zealand dollars traded higher after getting support from better-than-expected Chinese manufacturing data.</p><p><br /></p><p>The yen remained at a three-week low against the greenback as the market continued to assess the Bank of Japan's (BOJ) move last week.</p>