The US dollar dropped today against most currencies as both domestic fundamentals and the general optimistic market sentiment weighed on the currency.
The worker strike in Kuwait helped to stabilize prices for crude oil which fell on Monday. This helped commodity currencies while making safe currencies less attractive to speculators.
As for US data, the housing report was very disappointing. Housing starts fell to the seasonally adjusted annual rate of 1.09 million in March from the February’s 1.19 million. Building permits dropped to the same rate from 1.18 million in February. Both indicators were below market expectations.
EUR/USD rallied from 1.1312 to 1.1360 as of 20:44 GMT today. GBP/USD climbed from 1.4276 to 1.4400. NZD/USD surged 1.5% from 0.6949 to 0.7053, trading at the highest level since June 11.
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