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Dollar index falls as pound, euro, Aussie pull ahead

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Dollar index falls as pound, euro, Aussie pull ahead

The US dollar declined against a basket of its peers, as global economic data outweighed American factory orders and New York area business activity.

US factory orders for durable and non-durable goods rose 1.7 percent in September, according to the Census Bureau. The growth rate matched economists’ forecasts. The ISM New York index, which measures the business conditions of organizations operating in the New York region, jumped 6.3 points to 59.3 in November. Later this week the world’s largest economy will report data on third quarter GDP and October nonfarm payrolls.

The US dollar index fell 0.2 percent to 80.55, after the pound, euro and Aussie pulled ahead. The British pound jumped 40 pips, but remained firmly capped below 1.60 US dollars, after the UK construction industry grew at the fastest pace in more than six years. An upbeat housing sector led to a huge upsurge in construction activity in October, Markit Group reported.

Elsewhere in Europe, the common currency advanced 24 pips to 1.3519 US dollars, after falling to a six-week low on the heels of dovish comments made by the European Central Bank. The common currency was supported after the euro area’s manufacturing industry picked up where it left off in the third quarter, led by Ireland and Austria. The monthly manufacturing PMI of 51.3 was in-line with projections.

Down under, the Australian dollar received a boost after retail sales advanced twice as fast as expectations. Retail spending jumped 0.8 percent in September, according to Australia’s Statistics Bureau. The Aussie gained 60 pips against its US counterpart, closing the New York session above 0.95 US cents. The Australian dollar has rebounded sharply against the greenback, gaining more than 6.2 percent over the past three months.

Elsewhere, the US dollar was relatively unchanged against the Canadian dollar and Japanese yen, which were idle Monday. The US dollar will remain active all week, as several batches of economic data make headlines. Thursday sees the release of third quarter GDP figures, followed by October nonfarm payrolls Friday.

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