Forex »

US dollar continues lower amid data

Finances
Share on StockTwits
Published on
www.finances.com
US dollar continues lower amid data

The US dollar continued its week-long descent after a mostly negative data wire exposed persistent weaknesses in the economy.

The greenback fell more than 0.1 percent to 79.15 against a basket of its peers, as the economic data continued to pour in. Weekly jobless claims fell by 12,000 to 350K, but were higher than the median estimate of economists, which called for 340K. This increased the four-week moving average to 348,250.

Elsewhere, the US manufacturing industry expanded at a slower pace in October, according to a monthly PMI report from Markit Group. Growth in manufacturing fell to a 12-month low, with total output contracting for the first time since the height of the financial recession in September 2009. Weaker domestic demand was partly to blame, as manufacturers faced an unfavourable environment during the prolonged budget impasse.

The euro fell off its 23-month highs against the American safe haven after weak PMI data, but managed to stay elevated, gaining 30 pips to settle above 1.38. The common currency has gained more than 2 percent against the US dollar over the past month as the reality of a prolonged Federal Reserve stimulus continues to make headway.

Elsewhere in Europe, the British pound managed to pull ahead, advancing 0.30 pips to re-test 1.62. The pound was in consolidation mode ahead of the highly anticipated GDP reading Friday, when the Office for National Statistics is expected to say the British economy expanded 0.8 percent in Q3.

The USDJPY pair consolidated ahead of Japan’s monthly consumer inflation data, which are expected to give market participants clues about the progress of central bank stimulus. The US dollar has lost half a percent against its rival safe haven over the previous five sessions, as the outlook on the greenback continues to dim.

Commodity currencies didn’t fare as well against their US counterpart. Concerns over China continue dampen the outlook on the Australian dollar, which consolidated 0.1 percent lower in North America. Meanwhile, the Canadian dollar continued to backtrack after the Bank of Canada cut its growth forecast earlier in the week. The USDCAD pushed through a two-week high, gaining 38 pips to 1.0424

Share on StockTwits

What others are reading on Finances

Sorry. No data so far.


Iron FX 1.11156/1.11128 2.8
XM Markets 1.09948/1.09928 2
FxPro 1.10184/1.10171 1.3
FXCM 1.13943/1.13912 3.1