Again the U.S. dollar rose against the euro and sterling
with weak economic data from the euro zone and the United Kingdom, which
boosted increase in demanding for the safe place of the U.S. currency.
So we will see during European day trade, the dollar rose to
its highest level against the euro, with EUR / USD gaining 0.16% to hit 1.2829.
In the euro zone, fed a string of weak data doubts about the
strength of the recovery in the region in the first quarter.
Official data showed that the unemployment rate in the euro
zone rose to its highest ever of 12% in February compared with the original
estimate of 11.9% for the month of January, which was revised up to 12%.
In the euro area, revised data showed that the index of
manufacturing managers in the region rose slightly to 46.8 in March from 46.6
in the final reading in the previous month, where it is still much lower than
the 50 which separates growth and contraction.
PMI fell in German manufacturing again into contraction
region, to 49 in March from the final reading of 50.3 in February as new orders
fell, adding to doubts about the strength of the recovery in the euro area in
the first quarter.
Dollar also hit its highest level against the pound, with
GBP / USD gaining 0.29% to hit 1.5187.
Sterling came from the highest levels after data showed that
manufacturing in the UK purchasing managers' index rose to 48.3 in March from
47.9 in February, but came below expectations in reading to reach 48.5.
Weak data added to concerns about the risk of deflation for
triple rating fell, fueling speculation that the Bank of England may resume its
asset purchase program as soon as this week.
Dollar was trading near its lowest level in five weeks
against the yen firmer, with the decline in the dollar / yen by 0.07% to hit
93.16.
Yen's gains remained limited amid continued expectations to
do more than cash management procedures more powerful than the Bank of Japan
led by the Governor of the Bank of Japan's new Haruhiko Kuroda.
Dollar remained unchanged against the Swiss franc, with USD
/ Swiss franc by 0.01% to hit 0.9464.
In Switzerland, a report showed that manufacturing PMI S or
any dropped to 48.3 in March from 50.8 in February, contrary to expectations
for a reading of 50.2.
Weaker dollar was lower against its Canadian, Australian and
New Zealand counterparts, with USD / CAD shedding 0.22% to hit 1.0143, AUD /
USD gaining 0.35% to hit 1.0458 and NZD / USD gaining 0.47% to hit 0.8408.
Earlier Tuesday Reserve Bank of Australia kept interest
rates unchanged at 3.0% in the decision was expected widely, and said that the
previous interest rate cuts after the economy expanded.
The dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, rose 0.04% to hit
82.93.
The United States will deploy government report on factory
orders later in the trading day.
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