Forex »

US Dollar Ends Mixed on Weak Data

Share on StockTwits
Published on
US Dollar Ends Mixed on Weak Data

The US dollar was weaker today, as disappointing economic data spoiled the American currency’s three-day winning streak.

US manufacturing output in January fell to the lowest level in eight months, as severe weather disrupted production levels and new business growth. The Institute for Supply Management’s gauge of national manufacturing activity fell from 57 to 51.3. Meanwhile, construction spending in December slowed to a seasonally adjusted annual rate of $930.5 billion. This represents a modest gain of 0.1 percent over the previous month, down from a revised 0.8 percent gain in November.

As of 19:00 GMT, the US dollar index had fallen nearly 0.3 percent to 81.09. The dollar faced considerable losses versus the Canadian dollar, Japanese yen and euro. On the flipside, the dollar strengthened considerably versus the British pound, which was unable to rally off strong PMI data. Below is a breakdown of US dollar pairs at 19:00 GMT.

USD/CAD: The North American pair fell off four-and-a-half year highs Monday, hitting a session low of 1.1042. The pair would later consolidate north of the 1.11 line. In economic news, Canadian industrial production rose 0.7 percent in December, exceeding forecasts. Raw material prices rose 1.9 percent the same month, slightly below forecasts.

USD/JPY: Waning risk appetite brought the Japanese yen back in focus Monday, as forex traders flocked the Asian safe haven. The USDJPY pair tumbled 1 percent to 101.15. The pair has lost some-340 pips since reaching a high of 105.40 on January 2.

EUR/USD: The EURUSD pair rose to a session high of 1.3535 on the heels of stronger than forecast PMI data. The Eurozone manufacturing industry expanded at the fastest pace in 32 months, led by Germany. As of 19;00 GMT, the EURUSD was trading 32 pips higher at 1.3518.

GBP/USD: The US dollar remained firmer versus the pound, despite lackluster ISM data. The GBPUSD is caught in a bearish reversal, having shed more than 130 pips. As of 19:00 GMT, the pair was trading near the daily low of 1.6290.

Share on StockTwits