The U.S. dollar fell today against the euro and the yen as the macroeconomic indicators suggested that the economic expansion in the U.S., while continues, is slowing its pace, curbing the appeal of the U.S. currency.
The Philadelphia Fed index fell from 8.0 in June to 5.1 in July, instead of the expected growth to 10.2, showing the slowdown of the manufacturing growth. The NY Empire State Manufacturing Index showed the same picture, dropping sharply to 5.1 in July from 19.6 in the previous month. The indicator showed that the conditions for the New York manufacturers improved in July, yet the pace of growth in business activity slowed substantially. And only the claims for the jobless benefits brought more pleasant news, falling more than expected to 429,000.
The analysts don’t look surprised by the dollar’s slump. With the depressing U.S. economic indicators the investors have no choice but to sell the dollar, looking for the more reliable currencies.
EUR/USD traded at 1.2911 as of 15:41 GMT today after opening at 1.2742. USD/JPY traded near 87.47, tumbling from its opening price of 88.49.
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