Stock Market Watch

Forex Market Update: Dollar Index Up Despite Weak Economic Data

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In spite of a release of  two disappointing U.S. macroeconomic indicators, the dollar index remained higher on Friday as investors still expect the Federal Reserve to start winding down its quantitative easing ($85 billion worth bond purchase program) from September.

The dollar Index, a gauge on U.S. unit’s performance vis-à-vis a basket of six major currencies, rose 0.15% to 81.65

The WSJ Index, which uses a bit broader indexing criteria, edged up 0.09% to 73.87

The euro was last down 0.26% against the dollar to trade at $1.3264.

Easing concerns over Syria also supported the dollar. Both Russia and the U.S. said that international community should push for an early resolution on Syria which will ensure an end to a civil-war. Separately, Damascus also entered an anti-chemical arms convention. Yen, which is regarded as highly liquid currency, tends to benefit in the times of geopolitical tensions.

However, the yen was up 0.17% against the dollar to trade at yen99.37.

Earlier today, the Commerce Department said that the retail sales edged up only 0.2% in August, which was below economists’ forecast for 0.4% gain. In July, retail sales increased 0.4%. Core retail sales, which do not include automobile, gasoline and building materials, rose 0.2%, after rising 0.5% in July.

The U.S. consumer sentiment fell sharply in September, according to Thomson Reuters/ University of Michigan’s preliminary reading. The consumer sentiment index fell to 76.8 from 82.1, which was the final reading in August.








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edliston
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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