The US dollar rallied today following yesterday drop as macroeconomic data from the United States was better than market participants have hoped for. The currency was especially strong versus the euro after the European Central Bank slashed its main interest rate.
Basically all US fundamental reports were good today, totally opposite to the yesterday’s data. The US trade balance deficit shrank from $43.6 billion in February to $38.8 billion in March, more than analysts have predicted. Unemployment claims unexpectedly fell from 342,000 to 324,000 last week.
The favorable data allowed the US currency the recover. The euro had an interesting behavior against the greenback today as the shared European currency demonstrated a solid rally after the ECB cut its borrowing costs, but the later drop was even bigger, resulting in a huge net loss for the euro.
EUR/USD slumped from 1.3177 to 1.3059 as of 21:27 GMT today after rallying to 1.3217. GBP/USD slipped from 1.5553 to 1.5527. USD/JPY went up from 97.37 to 97.95.
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