USD Remains Strong, This Data Is The Focus!

<p>&nbsp;The greenback continues to show strengthening as the market enters the European session with the publication of manufacturing PMI data and the United States is now the focus of the market.</p><p><br /></p><p>Looking at currency movements, the dollar index, which measures the strength of the greenback, is trading strongly at around 102.15 against a basket of major currencies.</p><p><br /></p><p>On Monday, Federal Reserve (Fed) survey data showed US banks reported tighter credit standards and lower loan demand from both businesses and consumers in the second quarter.</p><p><br /></p><p>Meanwhile, the Aussie dollar continues to bleed after Australia's central bank (RBA) is not expected to keep interest rates unchanged at its meeting today.</p><p><br /></p><p>This has raised investor expectations that tightening from the central bank is nearing an end.</p><p><br /></p><p><br /></p><p>In the meantime, the yen also continued to weaken at the lowest level in three weeks, continuing the session of decline recorded since last Friday after the decision of the central bank of Japan (BOJ).</p><p><br /></p><p>Additionally, the pound remained trading gloomy as the market took a cautious approach ahead of the central bank of England's (BOE) interest rate decision on Thursday.</p><p><br /></p><p>The euro also fell, not far from near three-week lows touched on Friday against the greenback.</p><p><br /></p><p>Also weighing on sentiment was Caixin's manufacturing PMI data which showed a contraction in July from an expansion in June, indicating continued weakness in the recovery in China.</p>