Dollar Mixed as US Data Leaves Traders Confused
The US dollar was heading lower against the euro for the most part of today’s trading session, but currently managed to recover. The currency also rose against the Japanese yen, while staying flat versus the Great Britain pound.
Most Forex market participants believed that the Federal Reserve will scale back it stimulus program next month. Yet this week’s string of negative economic reports made traders uncertain about such outlook. The uncertainty resulted in a mixed performance of the dollar.
The University of Michigan Sentiment Index dropped from 85.1 in July to 80.0 in August, according to the preliminary estimate. Meanwhile, housing starts and building permits rose last month more than was forecast. The conflicting reports did not help the US currency to choose a direction, adding to the confusion on the market.
EUR/USD fell from 1.3345 to 1.3330 as of 19:27 GMT after rising to 1.3379 earlier. GBP/USD went down a little from 1.5637 to 1.5628. USD/JPY advanced from 97.33 to 97.58.
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Earlier News About the US Dollar:
- Dollar Weakens Despite Positive Unemployment Data (2013-08-15)
- Greenback Slips as Better News Comes Out of Europe (2013-08-14)
- US Dollar Gets Help From Latest Retail Sales Data (2013-08-13)
- US Dollar Back in Demand as Stocks Falter (2013-08-12)
- US Dollar Struggles on Jobless Data, Fed Uncertainty (2013-08-08)