Gloomy economic data and its influence on the price of dollar against the major currencies



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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