Dollar Suffers from Bad Fundamental Data
The US dollar fell today after bad fundamental reports spurred speculations that the Federal Reserve would implement the third round of quantitative easing nest week. The currency closed flat versus the euro.
Industrial production fell 0.1 percent last month instead of rising as was expected. The University of Michigan preliminary index of consumer sentiment unexpectedly dropped to 74.1 in June from 79.3 in the month before. The bad data supports the case for the Fed to ease its monetary policy. Economic stimulus means weaker dollar.
The greenback ended today’s trading session flat versus the shared European currency. The Greek elections this weekend are a major factor that may influence the Forex market strongly, but it is impossible to predict the outcome of the vote. Considering the uncertainty, it is not surprising traders preferred to be on the sidelines.
EUR/USD closed flat at 1.2636 today. GBP/USD surged from 1.5558 to 1.5712, reaching the high of 1.5728 intraday — the highest price since May 23. USD/JPY dropped from 79.33 to 78.67.
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