The US dollar consolidated against the euro today after dropping yesterday. The currency also sank versus the Great Britain pound at the previous trading session and continued to fall at the current session. The greenback extended its rally against the Japanese yen.
The latest US economic indicators from the United States were mixed. On one hand, housing starts and building permits fell last month, trailing economists’ forecasts. On the other hand, initial claims for unemployment benefits fell much more than was expected. The Federal Reserve Bank of Philadelphia reported that this month the manufacturing index retreated from the highest level since March 2011. Still, the report was not particularly bad, saying that “other broad indicators increased” and “surveyâs indicators for future manufacturing conditions reflect general optimism”.
While the dollar stumbled yesterday, it is still very strong. Traders continue to bet on an eventual interest rate hike from the Federal Reserve, even though the latest policy statement was not excessively hawkish.
EUR/USD advanced from 1.2865 to 1.2922 yesterday before trading at 1.2913 as of 1:05 GMT today. GBP/USD soared from 1.6393 to 1.6515 — the highest since September 2. USD/JPY climbed from 108.68 to 108.89.
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