The US dollar fell against most major currencies today on the speculation that the Federal Reserve will lag behind the European Central Bank in increasing its borrowing costs as the US economy isn’t recovering fast enough to warrant higher rates.
Today’s macroeconomic reports supported such outlook. The unemployment claims in the US rose from 385,000 to 412,000 last week, while they were expected to drop to 379,000. The Producer Price Index grew 0.7 percent in March, slower than expected 1.1 percent.
GBP/USD jumped from 1.6267 to 1.6370 and USD/JPY dropped from 83.82 to 83.19 today as of 14:302GMT.
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