US Dollar Falls for Second Consecutive Day

The US dollar traded lower against the vast majority of most-traded currencies (with the exception of the very weak Australian dollar), falling for the second day in a row, even though macroeconomic data released from the United States was good for the most part.

A bunch of US economic reports was released today, and most of them were very good. Of special note was the Philadelphia Fed manufacturing index that reached the highest level in in more than 30 years. Yet that did not prevent the dollar’s decline.

Market analysts offered several possible explanations for the currency’s underperformance. One of them was the controversial ruling style of new US President Donald Trump and concerns about what it can mean for the upcoming Group of Twenty meeting. Another one was uncertainty about timing of the next interest rate hike by the Federal Reserve.

EUR/USD rallied from 1.0599 to 1.0648 as of 17:58 GMT reaching the high of 1.0679 intraday. GBP/USD was up from 1.2460 to 1.2523 but retreated to 1.2470 by now. USD/JPY declined from 114.15 to 113.35.

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