Dollar Posts Substantial Gains After Mixed Data

Today’s data from the United States was rather mixed but it did not prevent the US dollar from demonstrating an impressive rally. The currency rose to the highest level in a month against the euro.
There were several macroeconomic reports from the USA today. Some of them were good, like durable goods orders, some of them bad, like unemployment claims. Yet others were harder to crack: the Consumer Price Index fell in January, yet the core components of the gauge actually rose.
While indicators were varied, traders preferred to pay attention to the good ones, bringing the dollar higher. Another reason for the greenback’s rally was durable goods orders of St. Louis Fed President James Bullard. He made hawkish remarks, saying that the word “patient” should be dropped from the monetary statement and also dismissed the impact of the strong currency on the economy as “marginal.”
EUR/USD dropped from 1.1360 to 1.1196 as of 19:53 GMT today. GBP/USD declined from 1.5526 to 1.5406 while USD/JPY advanced from 118.85 to 119.42.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *