The US dollar was back on its heels Wednesday, declining against a basket of currencies following upbeat Eurozone data and an unexpected drop in US durable goods orders.
The US dollar index, a weighted average of the greenback against six trade peers’ currencies, declined 0.5 percent to 96.68. The index has been in freefall since last Wednesday, when the Federal Reserve issued a cautious policy statement indicating that rate normalization would be a very slow process.
The dollar had weakened against the euro after German business confidence rose for a fifth consecutive month, boosting the appeal of the common currency. The EURUSD stopped short of the 1.10 handle, climbing 0.74 percent to 1.0991. The pair’s next resistance test is just above 1.10.
The greenback was under renewed pressure after the Department of Commerce said durable goods orders declined unexpectedly in February, raising warning signs about the US manufacturing industry. Orders for durable goods declined 1.4% in February and were revised down to 2% in January, official data showed.
Orders for non-military capital goods excluding aircraft, which is used to assess business spending, also fell 1.4%. That was the 6th consecutive decline.
Source: FXTimes.com
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
