The US dollar was mixed today despite fairly supportive economic reports from the United States. Still, the currency managed to reach new multi-year high versus the Japanese yen before pulling back closer to the opening level.
With inflation above analysts’ projections and unexpectedly good manufacturing data from the Philadelphia Fed, one might assume that the dollar would outperform its peers. Yet it was not so. It is even more surprising if one recalls that data from Europe was far worse than market participants have counted on.
For whatever reason the greenback showed relatively poor performance today, the US currency still has support from fundamental factors in the longer run. Prospects for monetary tightening from the Federal Reserve and economic woes in Europe and Japan will likely be attracting investors to the dollar in the foreseeable future.
EUR/USD ticked down a little from 1.2552 to 1.2541 as of 22:42 GMT today. GBP/USD traded at 1.5687 after opening at 1.5680. USD/JPY went up from 117.95 to 118.21, and its daily high of 118.97 was the highest since July 2007.
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