Forex News and analyses

Growth of the US dollar after better data

05 kwiecień 2017

Tuesday passed with a twist in the financial markets with the US dollar, stocks and government securities. Stronger than expected US data took the focus of the markets.

EUR/USD continued to trade in a narrow range around 1.0650. Limited movement was dictated by ECB President Mario Draghi, who did not mention anything about the economy and monetary policy in the euro area in his speech yesterday. Stronger than expected retail sales helped the single currency to prevent greater losses as the dollar rose.

The British pound again recorded a decline after the slow growth of the construction sector. GBP/USD closed the session at 1.2438.

With the worst performance in the last session were the Australian and New Zealand dollar, although losses were outlined during the European trading session. During the US session the two currencies have stabilized, pausing greater losses for the day. The Australian dollar is selling off sharply after the announcement of monetary policy by the Reserve Bank in the country. As expected, the bank left interest rates unchanged and remained optimistic about global trade, credit and industrial production.