Weaker-than-expected US growth and cooling inflation drive the USD lower, while suspected Japanese FX intervention lifts the JPY.
The US Dollar Index (DXY) dropped 0.8% to near 100.00, breaching a key psychological level after US GDP grew at an annualized 1.5% in Q2, below the 2.1% forecast. Core PCE inflation slowed to 0.1% MoM in June, missing expectations of 0.2%.
Earlier data showed US jobless claims at 197K, beating the 200K estimate, while the GDP Price Index surged 6.3%, exceeding forecasts. Eurozone GDP expanded 0.4% QoQ, double expectations, with Spain leading growth at 0.7%.
EUR/USD rose 0.5% to 1.1530, its highest in weeks, as the yen’s sharp rally fueled intervention speculation.