The (DXY) continued its slump to the range of 101.60s in friday's Asian session. Despite consolidating for three days, the Greenback has a potential to post its most severe weekly decline.

That was especially in four months periods ago. The reason is that some news from America make some traders keep their expectation low. It is related to the Fed interest rate increase which happened at second quarter of this year. 

The America’s GDP release or Gross Domestic Product yesterday showed a worse quarter by quarter slow down than the market expectations. What was the detail?

From that release, it could be seen that the I/2022 US data showed a growth of -1.5%. This number was lower than the one set by because their expextation is -1.3% so far. 

The Economic Growth in America may Rebound

Furthermore, the number above was also lower than a -1.4 percent growth happened in the previous report. Most analysts believed that the economic growth in USA will rebound. 

It is especially in a second quarter this year due to the customers spending which remains strong. However, the indications of economic slowdown may make The fed to think again about their further monetary tightening. 

Lately, some representatives of The Fed gave their statements. These statements triggered the market concerns about the continuity of their interest rate increase. 

Raphael Boston, said at the beginning of this week that The Fed may decide their continue rate increase in September this year. He is actually The Fed of Atlanta president.

A Bigger Rate hike is Possible to Occur

The situation above was taken after 59 basis point raise in June and July. The FOMC meeting minutes of Federal Reserve released on Wednesday declared that most of the representatives felt confident about a thing. 

They are quite sure that June and July are the right time for 50 basis point raise. However, analysts are now suspecting a bigger and faster increase where that can be a trick used by some parties. 

It is esp especially to open a space for suspension of continued rate hikes in the second half of the year. Meanwhile The United States treasury yields kept away from their high record. 

That was happened to hit a nearly two-month low of 2.752 percent today. Several experts said that market participants may not use it as the only data to hold since condition may change in the future. 

Elsewhere, the US Dollar Position is Pushed

Elsewhere, the Fed dovish rhetorical and weak GDP data combination also pushed the US dollar to some other major currencies. Then some parties tries to give their opinion about this. 

An ING strategy expert said that market tentative speculation about. the suspension in the Fed's monetary tightening cycle in September clearly contributed to the weakening of the dollar.

This opinion seems right and most analysts agreed with that. The EUR / USD pair then made a movement and continued it’s rebound up to above the level of 1.0730 when this news was written. 

GBP / USD Pair Also Experienced an Increase 

The foreign exchange market showed that several currencies pairs are moving and quite positive too8. That raise such as the GBP / USD pair as seen in several releases about foreign exchange. 

A source said that this GBP / USD pair Increased and reached the level around 1.2620. In the other place, AUD / USD also jumped by 0.5% which is quite good for it’s development in this recent era 

That pair moved until they pass the 0.7130. In a more detail, this condition occured after the Australian retail sales report. From that release it could be seen that nothing special in the Asian session. 

Before, the progress of interest rates increase was always becoming a crucial factor for the people. That made the United States dollar then moved from it’s lowest level in a month.