Stock Market Watch

Forex Market Update: U.S. Dollar Slips against Yen and the Euro

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The U.S. dollar fell against both yen and the euro on Thursday as more than feared drop in U.S. durable goods orders in March reignited concerns over the state of the U.S. economy.

On Wednesday, the Commerce Department’s monthly durable goods data showed that orders fell 5.6% in March compared to an expectation of 2.8% drop.

At around 8:30 a.m. EST, the euro was up 0.57% to trade at $1.3090, recovering from its low of $1.2954, hit on Wednesday after the German Ifo, index, a gauge on business sentiment, showed unexpected drop in business confidence in April. The euro also found some support yesterday over news reports saying that Italy’s political logjam could soon end.

The ICE dollar Index, a gauge on U.S. unit’s performance against a basket of six major traded currencies, dropped 0.6% on Thursday to 82.579 from previous session’s high of 83.190, which was its loftiest level since April 4, showed a data provided Reuters.

At last check, the U.S. dollar edged down 0.42% against the yen to trade at 99.08 yen.

However, currency strategist are expecting that euro will remain under pressure in coming days as there is growing speculation that the European Central Bank could further slash its benchmark interest rate following two back-to-back dismal economic data release from Europe’s growth engine, Germany. Earlier this week, German Composite PMI data indicated that economic activities contracted in April.

Meanwhile the pound sterling also rose sharply against the US dollar on Thursday after an economic data release showed that the U.K. economy grew faster-than-expected in the first quarter, avoiding recession. The data has dashed hopes on more monetary easing from the Bank of England (BOE) when it meets for its next policy rate meeting in May.

At last check, the pound Sterling jumped 1.33% to trade at $1.5471.

 

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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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