Tuesday, 2 February 2016

Week US data dragged the greenback notably lower


Personal income in the US for December remained unchanged at 0.3%, while personal spending decreased from 0.5% to 0.00%. ISM index for the manufacturing sector marked 48.2, which was lower than expectations for 48.5. The figures showed that the manufacturing sector continues to suffer at the beginning of 2016.
The Vice Chairman the Fed, Stanley Fischer, said that if latest developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States. Similar periods of volatility have been seen in recent years that have left little permanent imprint on the economy.

Weak US data yesterday toppled dollars. The greenback remained particularly lower against the euro and the EUR/USD pair was trading around $1.0880, and erased all of Friday's gains.
Best performed the high-yielding currencies including the New Zealand and Canadian dollar and British pound.
The greenback fell below 1.40 against the Canadian dollar after the beginning of the year was trading at levels of 1.47. Next support is 1.3815. 
The British pound bounced from lows and consolidate below 1.45. Only definite breakthrough of last figure would reverse the downward trend. 
The Australian dollar traded near resistance at the 100-day moving average of 0.7148. On approaching it probably we again will witness sales.




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