Stock Market Watch

Forex Market Update: Dollar Index Falls, Euro Hit Two-Year high against the Dollar

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The dollar index edged lower on Thursday as a set of another weak economic data from the world’s largest economy has raised the possibility that the Federal Reserve will keep intact its easy-money policy  for an extended period, which will weigh on the U.S. unit as investors will look for higher yielding currencies.

At last check, the dollar index, a measure on greenback’s performance against a basket of rival currencies, fell 0.16% to 79.15.

The Labor Department said that weekly jobless claims fell 12,000 for the week ended Oct. 19 to a seasonally adjusted 350,000. Economists polled by Reuters had expected 340,000 claims.

Separately, Markit, a financial data analytics company, said that pace of manufacturing activities eased in October. The manufacturing PMI fell to 51.1 in October from 52.8 in September.

Earlier on Tuesday, the Labor Department’s non-farm payrolls report also showed that less-than-expected payrolls were added in September.

Earlier today, the euro climbed to its two-year high against the dollar to trade at $1.3824. The common currency pared gains after PMI data from the euro zone showed that pace of manufacturing activities slowed unexpectedly in October. However, it bounced back after the release of tepid U.S. jobs and PMI data.

“The market is still focused on the Fed, but the disappointing tone of the euro zone data will suggest that the euro is looking toppy up here and this should keep euro/dollar in check,” said Jane Foley senior currency strategist at Rabobank, according to Reuters.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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