The US dollar today declined against its main rivals even as economic releases indicated that durable goods orders rose, while core orders declined. The pending home sales for January declined, while the Dallas Fed Manufacturing Business Index rose. However, the positive economic releases could not boost the US dollar as investors remained cautious awaiting Trump’s speech.
The US Dollar Index, which tracks the greenback’s performance against its main competitors, opened the day’s session trading at 101.26 and entered into a downward spiral to hit a daily low of 100.75.
The US dollar opened today’s session to high selling pressure as investors sold the currency in anticipation of Donald Trump‘s speech before congress tomorrow. The release of durable goods orders that had expanded by 1.8% beating expectations did not help reverse the greenback’s decline. The Dallas Fed Manufacturing Business Index was also reported as having risen to 24.5 in February.
The US dollar was also affected by budget news, which indicated that Trump will increase defense spending by about $54 billion, and that he will also spend big on infrastructure. The budget news also indicated that Trump’s administration will implement cuts to foreign aid.
The US annualized GDP report and the Advance Goods Trade Balance for January scheduled for release tomorrow are likely to affect the greenback.
The EUR/USD was trading at 1.0625 as at 17:01 GMT having opened the day’s session trading at a low of 1.0564, which is a gain of about 50 points. The GBP/USD was trading at 1.2473 having hit a daily low of 1.2383 at the beginning of the day’s session.
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