Thursday, 31 March 2016

Slide and stumble

In the last day of March USD fell to a five-month low against the euro and is about to mark the most strong losses against other major currencies on a quarterly basis in five years. The greenback remains under pressure for the third consecutive day of trading after Yellen’s cautious message.
Meanwhile the dollar index decreased by 0.2% to a fresh five-month low at 94.555 points and is on track to record the biggest monthly decline since April 2015 and the most solid quarterly depreciation by nearly 4.3% from the first quarter of 2011 onwards.
The overall weakness of the US dollar pushed the euro towards five-month high at 1.1398. The single currency found some support from the rising core inflation in EU and mixed CPI numbers. A potential more stable break above 1.1400 level may deepen the upward movement of the euro towards 1.1460/1.1500 area. 
Today the greenback remains under pressure against the yen at 112.00 and is about to end with quarterly losses of nearly 7%.

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