We have updated our privacy policy and terms & conditions. Find out more here.

Forex - Dollar erases gains earned on factory data, dips as stocks rise

ForexMay 24, 2013 06:43PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - The dollar gave back earlier gains against most major currencies on Friday, as investors sold the safe-haven currency for profits and snapped up positions in equities markets ahead of a holiday weekend in the U.S.

The dollar rose earlier after official U.S. data revealed that orders for long-lasting manufactured goods came in much stronger than expected for April.

In U.S. trading on Thursday, EUR/USD was down 0.05% at 1.2928.

Solid manufacturing data sent the dollar gaining earlier.

The Commerce Department reported earlier that core durable goods orders, which are stripped of volatile transportation items, rose 1.3% in April, far surpassing market expectations for a 0.5% increase after contracting by 1.7% in March.

Broader orders for durable goods, which include transportation items, rose 3.3% last month, more than market calls for a 1.5% increase after a 5.9% contraction in March.

The numbers sparked demand for the greenback earlier by stoking sentiments that the Federal Reserve may be closer to winding down monetary stimulus programs.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their dismantling can strengthen the greenback.

The dollar erased those gains later in the session as investors sold the unit and took on risk in the stock market.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.16% at 1.5132.

The dollar was down against the yen, with USD/JPY down 1.08% at 100.91, and down against the Swiss franc, with USD/CHF trading down 0.85% at 0.9606.

Bank of Japan Governor Haruhiko Kuroda said earlier that monetary stimulus programs in the country were "necessary" but also "sufficient," which strengthened the yen.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.20% at 1.0324, AUD/USD down 1.02% at 0.9648 and NZD/USD trading down 0.61% at 0.8084

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% at 83.68.

Forex - Dollar erases gains earned on factory data, dips as stocks rise

Related Articles

Dollar index pares some gains after small ADP miss
Dollar index pares some gains after small ADP miss
By Investing.com - Mar 04, 2015

Investing.com - The dollar eased back from almost 11-year peaks against a basket of other major currencies on Wednesday after data showing the U.S. private sector created ...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.