Amid the shrinking federal budget, higher unemployment numbers and rising graduation rates, this week started yet again on a depressing note for Uncle Sam when the U.S. dollar showed no improvements in its prices, and lost its ground against almost every major currencies.
The believers are yet again blaming the U.S. manufacturing output, which got severely affected by the bad weather reports in early January. But in spite of Federal tapering program, U.S. data has remained soft and its outcome is seen on the world’s other major currencies.
Despite weaker economic growth in Japan (0.3% against the expected 0.7%), the dollar stumbled 0.2 percent to 101.60 yen, and now at its lowest since February 6. Japan’s finance minister Mr. Sho Aoyama too mentioned U.S. weaker economy growth as the major reasons why the nation’s consumer spending, investments and exports have shown disappointing numbers.
“The dollar is likely to remain under pressure as participants look to more data, such as U.S. GDP, for further signs of weakness in the U.S. economy, but persistent expectations towards further easing by the Bank of Japan will limit its fall against the yen,” Aoyama added.
The euro too showed an inclination against the dollar, hitting the three-week-high 1.3710 after being closed at 1.3691 last week. The Eurozone’s fourth-quarter data is further hoping to boost its recovery mode – the result of which is likely to be the dollar losing its grip in the European market.
The GBP/USD too showed positive growth for the pound as the latter ended last week at its three-year high against the dollar. As of Friday, the GBP/USD pair was at 1.6748, after soaring 2.10% in a week. As of now, it is at a stable 1.671 and is hoping to gain further with the U.S. market being closed on Monday for Presidents Day holiday.
Asian session is showing the U.S. dollar declining yet again against the Swiss franc, where the pair is trading at 0.8910 – 0.11% lower than Friday’s close, which was 0.8920. There is no speculation of any major economic news from Switzerland, while the global market events are likely to show some further direction to the pair. As of now, the
USD/CHF is likely to find support at 0.8890, while its first and next resistance levels might be 0.8932 and 0.8950, respectively.
Keep watching this section for more updates on the forex market.
To contact the reporter of this story: Jonathan Millet at email@example.com