mercredi 15 avril 2015
Dollar slips on weaker U.S. data, profit-taking from euro shorts
Posted on 15:00 by nice news
The U.S. dollar slipped against a basket of major currencies on Wednesday after weak U.S. economic data led traders to buy back the euro and sell the dollar on uncertainty over the timing of the Federal Reserve's first interest rate hike in nearly a decade.
The dollar index slipped for a second straight session in the wake of data showing U.S. industrial output posted its biggest drop in more than 2-1/2 years in March and growth in manufacturing activity in New York state unexpectedly contracted in April.
"The softer U.S. economic data that we've been seeing recently could delay market expectations of the timing of the first rate hike," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.
Analysts have said that currency traders have become highly sensitive to U.S. economic data releases since they offer clues on when the Fed could hike rates from rock-bottom lows. A Fed rate hike is expected to boost the dollar by driving investment flows into the United States.
The euro, which traded lower against the dollar in morning trading, gradually appreciated against the greenback. The euro's recovery occurred despite the European Central Bank reiterating its dovish stance on monetary policy.
The dollar index slipped for a second straight session in the wake of data showing U.S. industrial output posted its biggest drop in more than 2-1/2 years in March and growth in manufacturing activity in New York state unexpectedly contracted in April.
"The softer U.S. economic data that we've been seeing recently could delay market expectations of the timing of the first rate hike," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.
Analysts have said that currency traders have become highly sensitive to U.S. economic data releases since they offer clues on when the Fed could hike rates from rock-bottom lows. A Fed rate hike is expected to boost the dollar by driving investment flows into the United States.
The euro, which traded lower against the dollar in morning trading, gradually appreciated against the greenback. The euro's recovery occurred despite the European Central Bank reiterating its dovish stance on monetary policy.
Dollar slips on weaker U.S. data, profit-taking from euro shorts
Inscription à :
Publier les commentaires (Atom)
0 commentaires:
Enregistrer un commentaire