0
 

Forex - Dollar slips on slew of disappointing economic indicators

By Investing.com  |  Forex News  |  May 16, 2013 07:34PM GMT  |   Add a Comment
 
AA
+
-
Investing.com - A second consecutive day of disappointing economic indicators in the U.S. and Europe sent the dollar falling against most major currencies on Thursday, mainly by stoking concerns that the Federal Reserve will keep monetary stimulus tool in place for longer than once anticipated.

Forex - Dollar slips on slew of disappointing economic indicators
Stimulus measures, such as the Fed's monthly USD85 billion bond-buying program, weaken the greenback by flooding the economy full of liquidity to keep interest rates low and encourage investing and hiring.

In U.S. trading on Thursday, EUR/USD was down 0.10% at 1.2875.

The Federal Reserve Bank of Philadelphia reported earlier that its manufacturing index fell to -5.2 in May from 1.3 in April.

Analysts were expecting the index to improve to a reading of 2.4 in May, which fueled sentiments that loose policies at the Federal Reserve aren't going to wind down anytime soon as did disappointing numbers out of the labor market.

The Department of Labor said earlier Thursday that the number of individuals filing for initial unemployment assistance in the U.S. rose by 32,000 to 360,000 last week, well above expectations for an increase of 2,000 to 330,000.

Soft inflation data took the steam out of the dollar as well.

The country's consumer price index fell 0.4% in April from March, worse than expectations for a 0.2% decline, down for the second consecutive month.

Year-on-year inflation rates in the U.S. came to 1.1%, just shy of market expectations for a 1.3% reading and well below the Federal Reserve's 2% target.

Spotty data out of the housing industry dampened the dollar as well.

The Commerce Department said the number of building permits issued in the U.S. rose 14.3% to 1.017 million units in April, well above expectations for a 6.2% increase to 945,000 units.

U.S. housing starts fell by 16.5% last month to 853,000 units, outpacing expectations for a decline of 4.9% to 973,000.

Thursday's data came in wake of soft industrial output and producer-price reports released on Wednesday.

Soft indicators out of Europe, however, cushioned the dollar's losses by bolstering the greenback's use as a safe-haven due to its liquidity.

On Wednesday, official data revealed that the eurozone economy contracted by 0.2% in the three months to March, a little more than analysts' calls for a 0.1% contraction.

Earlier Thursday, the eurozone said its consumer price index rose 1.2% on year in April, in line with expectations.

A separate report revealed that the eurozone posted a record trade surplus in March as imports fell 1% from February, while exports grew 2.8%.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.21% at 1.5268.

The dollar erased earlier losses against the yen, with USD/JPY up 0.03% at 102.28, and down against the Swiss franc, with USD/CHF trading down 0.12% at 0.9636.

The dollar was up against its cousins in Canada, Australia and New Zealand, mainly on fears cheaper commodities will cut into growth, with USD/CAD up 0.29% at 1.0188, AUD/USD down 0.83% at 0.9816 and NZD/USD trading down 0.96% at 0.8161.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 83.90.

On Friday, the U.S. will release preliminary data from the University of Michigan on consumer sentiment and inflation expectations.










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.

Related Articles

Forex - JPY trades flat in thin Good Friday trade
By 
Investing.com
 - Apr 17, 2014
USD/JPY trims losses on upbeat U.S. data
By 
Investing.com
 - Apr 17, 2014

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.

NZD/USD
 
 
 
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.
_touchLoadingMsg