Blog Posts, Forex, Market Reports

Mid-Week Dollar Commentary: Dollar Lower as Other Currencies Strengthen on Better than Expected Data

By Jay and Julie Hawk of www.TheFXperts.com

 

The U.S. Dollar continued selling off this week, with the Dollar index trading below the key 94.00 area after bottoming out at 93.80 early today. The index is currently expected to trade lower if the 93.80 level is breached, or trade higher upon a penetration of the 94.10 resistance level.

The European currencies extend their gains today, with EUR/USD trading over the 1.1770 level and GBP/USD trading as high as 1.3298. Sterling gained significantly after better than expected CPI data yesterday, which increased +2.7% y/y compared to the +2.4% market consensus. Also, today’s UK Retail Sales number showed an increase of +0.3%, which was significantly stronger than the expectation of a -0.2% decline.

The Euro was supported by a rally in German 10-year Bunds, which saw yields test the 0.50% level. Also, the Yen fell somewhat after the BOJ left its Policy Rate unchanged at -0.10%, while the Swiss Franc continued gaining after the SNB left the Libor Rate at -0.75% after lowering its inflation forecasts.

With respect to the commodity currencies, the Kiwi was supported by New Zealand GDP, which showed a +1.0% increase versus the +0.8% anticipated, although the Aussie’s gains lagged somewhat. Nevertheless, the Loonie showed weakness as the market looks to Friday’s release of Canadian inflation numbers.

 

Disclaimer:

TheFXperts’ Forex MarketWatch Reports are provided strictly for educational purposes and represent the opinions of the authors. No recommendation or endorsement for specific financial trading or investment purposes is offered. Subscribers are advised to seek financial, business and legal guidance from licensed professionals.

Visit TheFXperts’ official website at www.TheFXperts.com.  You can also view and purchase Jay and Julie Hawk’s six financial books at Jay’s Amazon author page here: amazon.com/author/Jayhawk

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