Dollar Still High After US Economic Report on Monday
The United States Dollar still increased against the main trading currencies on Monday, even though the United States manufacturing data increased at a sluggish rate in the past 13 months which ended in February, according to the upbeat U.S. growth data released on Friday.
The Monday report by the Institute for Supply Management indicated that the manufacturing purchasing managers index of US reduced to 52.9 in the month of February from the previous value of 53.5 in the month of January.
Also, the Commerce Department stated in released data that United States consumer spending declined 0.2 percent last month after declining to 0.3 percent in the month of January.
Investors still support the dollar following the data published by the Commerce Department on Friday about the increase of the United States gross domestic product at a yearly rate of 2.2 percent in the last quarter of 2014, lower than the expected value of 2.6 percent, but higher than the forecast of a sloping revision to 2.1 percent increase.
The United States dollar index, which measures its strength against a group of six major currencies, increase to 95.43 at 0.14 percent up. Against the US Dollar, the Euro skinned a bit from its earlier value on Monday of 1.1240 to stay at 1.1198, and remained at this rate throughout the day.
The Euro was empowered early on Monday following the data released by Eurostat indicating a decline of the yealy consumer inflation rate to 0.3 percent in the last month better than the expected decline of 0.4 percent, after a 0.6 percent fall in the month of January.
A different report indicated a decline of the unemployment rate in the Eurozone to 11.2 percent down in January, lower than 11.3 percent which was the value in December. This has been its least value since the month of April 2012.
Markit data report that was released early on Monday indicated the United Kingdom activity within the factory sector increased in the month of February, more than before, showing that the economic recovery process is working after pausing a little towards the end of 2014.
However, the rise of Euro in the foreign exchange market was paused on Monday because forex investors are watching out for the next meeting of the European Central Bank this Thursday, where the quantitative easing program details will be unveiled.
The United States dollar increased against the Japanese yen and the Swiss franc, with USD/JPY to 120.08, up 0.42 percent, and with USD/CHF increasing to 0.9578, up 0.38 percent. Also, the Pound Sterling declined, with GBP/USD to 1.5363, down 0.49 percent.