Soft Economic Data Limits US Dollar

The latest economic data out of the United States is somewhat soft, and that is weighing on the greenback today, limiting its progress. The dollar is lower against its European counterparts, and paring some of its gains against other currencies.

US economic data released earlier showed disappointing softness. Durable goods orders in the United States dropped by 2 per cent during October. Expectations were for a 1.7 per cent drop, so the softness was unexpected and is weighing on the greenback. Between that and recent comments that the Federal Reserve isn’t in a hurry to end its tapering program, there isn’t a lot of support for the greenback.
On top of that, many investors are also focusing on the US stock market. The Dow Jones Industrial Average has reached another nominal high, and it is closer to reaching a “real” high, as adjusted for inflation. That is getting a lot of play right now, and taking some of the focus away from the US dollar, which is struggling against its European counterparts, and which has pared some of its earlier gains against other currencies.
At 16:26 GMT EUR/USD is up to 1.3579 from the open at 1.3569. GBP/USD is up to 1.6280 from the 1.6213. USD/JPY is up to 102.0815 from the 101.2720.

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