Dollar Trades Stronger Ahead of Buoyant U.S. Economy

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During Wednesday trading session, the Dollar traded at 0.2%, its strongest level in last five weeks against euro. The improving U.S. economy has raised speculations about the reduction of incentives by the Federal Reserve. The Yen, on the other hand gathered from its low of four years.

The USD in comparison to all the other major currencies traded higher in the day’s start after the spotty data from Europe augmented the currencies’ safe retreat request. In the meantime, the climbing stock prices, which the weakening of Yen and new policies by Bank of Japan drove, also appeared as a support for the USD.

In Wednesday Asian trading session, EUR/USD moved up by 0.03% to 1.2944, with its last lower level at 1.2915 and high at 1.3029. Greenback plummeted against the pound and the GBP/USD was seen trading over 0.06% at 1.5220.

USD/JPY, dollar against yen, traded little lower and plunged by 0.19% at 102.22. Also, the USD/CHF slipped by 0.02% to 0.9669.

The dollar showed a mixed trend against its cousins in Australia, Canada, and New Zealand. The currencies here traded as; USD/CAD climbed up by 0.14% at 1.0194, NZD/USD moved up by 0.07% at 0.8203 and AUD/USD traded moving up by 0.03% at 0.9892.

In New Zealand, retail sales rose less than expected and as per data a 0.5% growth seen in Q1 lower than the expected, 0.8%. The USD index, which is based on the performance of greenback against a group of six foremost currencies, moved up by 0.10% at 83.79.

Later today, the U.S. will release data on the price inflation by producers and reports about industrial production and capacity utilization rates. In addition, information for the manufacturing data in New York is expected.
In Wednesday trading session in Asia, EUR/JPY fell by 0.17% at 132.11, and traded in between, the low 132.06 and high 132.37. The pair was to find support at 131.54 and resistance at 132.77, based on Tuesday’s performance.

Euro traded higher against the USD and lower alongside the pound. EUR/GBP slipped by 0.04% at 0.8493 and EUR/USD went up by 0.12% at 1.2936.