US Dollar Increases Loss Due to Poor US Data
United States dollar dropped against a group of the main currencies on Wednesday early trade following a poor US economic report coupled with the healthy report of German’s business with the capacity to cause more losses for the US dollar.
The Euro increased more than $1.10, this is occurring now for two consecutive sessions following the Commerce Department report of a decline in the non-defense capital goods orders not including aircraft, reducing to 1.4 percent in the month of February from 0.1 percent drop in the first month of the year.
Published data was the newest to indicate an increase in the economy which fell suddenly at the beginning of the year suggesting to investors the idea to sell off dollars following its extended and overdone growth.
New York based Credit Agricole Currency Strategist called Mark McCormick said – “The dollar is overbought and it’s expensive, so now any U.S. data weakness we have leads investors to square up overextended dollar positioning”.
The great German IFO indicator that was more than predictions for the month of March aided to blow up the Euro more quickly than expected.
According to Mr Mark McCormick the US dollar is striving up since the United States Feds are still disposed to increasing interest rate this year in spite of the running programs of Japan and the Eurozone to purchase bonds.
The United States dollar index that calculates the strength of the US dollar against a group of six main currencies, increased up to 25 percent from May last year but the announcement of a delayed interest rate hike made by the Federal Reserve last Wednesday caused the US dollar index to decline at a rate of 2.7 percent.
New York based Mizuho Corporate Bank’s Forex Strategist Sireen Harajli stated this – “I think the dollar will remain range-bound ahead of the payrolls report next week, and I think the bias will likely be on the downside on the dollar until then.”
The Euro against the US dollar rose up 0.45 percent to $1.09730, following a session highest value of $1.10145, which was between the highest value of $1.10625 last Wednesday, and the March 16th value of $1.04570.
The US dollar against the Japanese yen dropped down 0.22 percent to 119.470 yen.
The US dollar against the Swiss Franc rose up 0.15 percent to 0.95970 franc.
The US dollar index reduced 0.40 percent to 96.785 on Wednesday the 25th of March.