Forex News and analyses

The dollar has increased almost without interruption for а third consecutive week

The dollar rose on Thursday, continuing almost without interruption, its longest rally against the euro since 1985, exchanging to 1.2697 at the end of the day.

Daily low was recorded at 1.2666 after the single currency was under pressure from growing concerns about the economic situation in Spain and Greece. The single currency is below $ 1.27 for the first time since mid-January.

Later in the day the dollar lost some of its lead after the published data on industrial activity in the U.S. The Philly Fed Manufacturing Index reported a decrease to -5.8 points against an expected grow to 10.3. Market participants interpreted the news as a sign of a slowdown in the economy, sparking fears of taking new measures by the Fed to maintain accommodative fiscal policy - most likely through quantitative easing, or buying government bonds.

These concerns, supported by lowering yield to maturity of US treasuries led to a sharp retreat in the dollar against the Japanese currency. The currency pair USD / JPY fell from 80.31 to 79.26. In the early hours of the day, better data on GDP growth in Japan, also had its support. The pair EUR / JPY declined from 102.13 to 100.65 at the end of the day.

The British pound lost positions against the dollar for  fourth day straight, this time depreciating from 1.5907 to 1.5794.