The US dollar was rising in the Friday sales. That currency has been experiencing the turbulence in several days in line with the turbulent market risk which is happened. 

When this news was written, the index of dollar or DXY increased by 0.16% to 92.97. That was the highest level since 2 of April. Last Wednesday, that index also touched the highest level. 

That has happened for 3.5 months in 93.194. The covid delta variant has a possibility to fail the global economy recovery. That is why; USD gets an advantage as a safe haven asset. 

The market is now focusing on the pandemic again. The delta variant directs all parties to the newly designed policy to fight that virus. That was said by an analyst from the BoFA Global Research. 

EUR/USD May be the Weakest Pair

The delta variant can highlight the implementation slow down lately in the United States. That is possible to inhibit the expected economy normalization. How about the inflation level? 

On the other side, the inflation continues to show a surprising increase. The analysts added that they are still expecting the US dollar strengthening at the end of this year. 

The EUR / USD is predicted to become a currency pair in the weakest position or in $1.15. For your information, now that currency is sold in the position of 1.1764 in the market. 

The EuroZone data released yesterday evening showed the developed business activity with the fastest monthly speed. That was happened in more than last two decades. 

The COVID-19 Infection Concern Hit the Business Trust 

Meanwhile, the EuroZone Flash Markit composite PMI increased from 59.5 to 60.6 in July. However, the Covid delta infection concern hit the business trust at the moment. 

In it’s newest meeting, ECB showed their commitment to maintain the interest rate in the lowest level for a longer time. Christine Lagarde as the president gave her statement. 

The new pandemic wave can trigger the risk for an economic recovery in the EuroZone. However, it is predicted that the economic prospects will be more balance than before. 

The next market focus is that the Federal Reserve monetary policy that will be done next week. In a meeting before on 16 of June, the Fed representatives started to set aside the coronavirus spread. 

The PMI Manufacture Data Release 

The decision taken is quite surprising since the delta variant spread is rising right now. That is why; the market is waiting for the new clue about the progress of that decision. 

On Monday, the Japan’s statistic bureau released the PMI manufactured data as the Jibun Bank Survey for the July 2021. That manufacture index expresses the declining expansion from 52.4 to become 52.2.

That was the lowest level since 5 months lately. This thing reflects the Japan’s manufacture which faces the obstacle when the government applies the limitation for pressing the COVID-19 spread.

In a further release, the PMI manufacture data expansion shows the slow down step. Most of them are affected by some sub-index such as the new production and order which declined. 

Why the Manufacture Expansion Slow Down

The increasing cases of COVID-19 and the stalled supply chain of raw materials are the main factors causing factory expansion to slow down. That was said by Usamah Bhatti.

She is actually the IHS Markit economist. Bhatti also confirmed that overall private sector activity declined in July compared to the previous month. That can be seen from a note lately. 

This will certainly have an impact on the Japanese economy in the third quarter which is struggling to recover from the impact of the pandemic. The Short-term disruptions continues. 

That is until the new wave of COVID-19 passes and the social restrictions imposed by the government are lifted. The level of private sector employment continues to grow.