Dollar and euro weighed by dovish sentiment The dollar slipped towards a month’s low against a basket of major currencies and the euro dipped last Friday after dovish comments by European Central Bank President Mario Draghi. The Aussie was up to test this year’s highs after Chinese manufacturing activity surprised higher, overnight data showed. The greenback was under pressure to start the week ahead of data this week which is expected to show manufacturing activity and new home sales slowed, with analysts forecasting the economy to have shrunk more than previously estimated. If numbers are confirmed sluggish, the Federal Reserve will find more scope to keep its rates near zero for longer. EUR/USD touched 1.3564 on Friday, after hitting a high of 1.3643 earlier in the week following a dovish outcome from the Fed’s FOMC meeting. Meanwhile a gauge of volatility on the USD/JPY pair stayed at record low levels. USD/JPY was at 101.95 at the time of writing, but has traded between 101.70 and 102.30 for most part of the last week. Asian stocks were buoyed overnight by strong factory data out of China which also helped the kiwi and Aussie dollars jump to fresh highs. Wall Street shares closed at fresh highs increasing investor appetite for risk. Crude oil held near nine-month highs and gold held steady above $1’300 as fighting intensified in Iraq. The Canadian dollar outshined its major rivals last Friday after inflation figures hit a 27-month peak of 2.3 percent in May. USD/CAD fell to its lowest since January 7th on Monday by 1.0721. Another standout performer at the end of last week was the British pound which stayed near a five and a half year high hit last Thursday. GBP/USD touched 1.7049 on Monday. Good day,
Posted on: Mon, 23 Jun 2014 10:11:16 +0000
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