The dollar dropped to one-and-a-half month lows against the other major currencies on Thursday, as markets geared up for the upcoming British referendum on a potential exit from the European Union.
GBP/USD gained 0.75% to 1.4826, just off Wednesday’s six-month highs of 1.4845.
The pound strengthened after an opinion poll indicated late Wednesday that support for the Remain camp edged into the lead.
EUR/USD rose 0.66% to 1.1369.
Earlier Thursday, research group Markit said Germany’s manufacturing purchasing managers’ index rose to 54.4 in June from 52.1 the previous month, beating expectations for a downtick to 52.0.
Germany’s services PMI slipped to 53.2 this month from 55.2 in May.
Markit also said that the French manufacturing PMI fell to 47.9 in June from 48.4 the previous month, compared to expectations for a rise to 48.8.
France’s services PMI slipped to 49.9 this month from 51.6 in May.
Meanwhile, the euro zone composite PMI, which includes manufacturing and service sector activity, ticked down to 52.8 in June from 53.1 the previous month.
The dollar was higher against the yen, with USD/JPY up 0.45% at 104.86 and was lower against the Swiss franc, with USD/CHF sliding 0.40% to 0.9548.
The Australian and New Zealand dollars were stronger, with AUD/USD up 1.19% at a nine-month high of 0.7586 and with NZD/USD advancing 0.95% to a 12-month peak of 0.7231.
Elsewhere, USD/CAD retreated 0.82% to trade at 1.2786, the lowest since June 10.
The commodity currencies were also boosted as oil prices rebounded from losses posted on Wednesday after the U.S. Energy Information Administration reported a smaller than expected fall in U.S. inventories last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.59% at 93.26, the lowest since May 6.
Dollar index has support 93.00 and resistance 95.30.
Three consecutive + weekly close below 93.00 will take it to 92.80--92.50 and then to 91.90 else could test its resistance level of 95.30.
Further upside rally can be seen if close above 95.30.
More will update soon!!
