The US dollar declined versus its major counterpart currencies on Tuesday where the Euro strengthened on the better than expected economic data by euro zone. Investors took fresh position on single currency perceiving it to be safe haven keeping in view the political and economic unrest in Egypt.
The dollar index DXY which measures the US dollar’s movement versus its six major rival currencies declined to 76.008 on Tuesday’ s North American trading session as compared to 77.777 on Monday
The Euro surged to 1.3835 against the greenback as compared to 1.3689 on late Monday. Investors were very optimistic about the single currency and took fresh positions on the euro zone’s increased PMI index for manufacturing sector depicting high factory activity in last nine months.
Moreover Germany also reported a decreased of 13,000 in its unemployment figure for the month of January.
Economist Andrew Grantham from HSBC commented, “The figures confirmed that growth remained robust in January and suggested that it is now more broadly-based.”
The US dollar experienced high selling pressure but later in session recovered on better than expected US manufacturing data.
The greenback also declined versus the British Pound as the pair GBP/USD surged to 1.6148 as compared to 1.6020 on Monday. Pound Sterling remained strong as the Britain’s manufacturing PMI reached its record high to 62.0 for the month of January.
The US dollar declined to 81.40 against the Japanese Yen as compared to 82.07 on Monday. The trading of Yen is highly reactive to US treasury rates which have increased after strong US manufacturing data on Tuesday.
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Daily forex trading news written by Rehan from DailyForexTrade.com
