Saturday 13 August 2016

The dollar fell after weak economic data from the US

The dollar fell on Friday after US data unexpectedly indicated that retail sales in the US have not changed in July, while the producer prices fell, triggering fears about economic growth in the third quarter.
Economists forecasts for retail sales were for growth by 0.4 percent. The decline in producer prices was the first since March and the strongest since September 2015.
"Retail sales data in the US is particularly strong pushing down the dollar", - said Nick Bennenbrek from Wells Fargo Securities in New York.
Dollar slowed down by 0.46 percent on Friday night to a basket of major currencies, falling to 95.254, at least one week. The dollar also lost 0.9 percent against the yen to 101.00 and 0.6 percent against the euro, to $ 1.1201.
A week ago, the US currency has demonstrated rally after data, which pointed stronger job growth in July than forecasts, reinforcing expectations, that the Fed will raise rates this year.
However, this week, the dollar lost its advantage, as investors hardly expect a rate hike in September, and the December's meeting of the regulator is still far.
The Australian dollar rose by 0.3 percent to $ 0.7714 after falling to $ 0.7671. The New Zealand dollar gained 0,5 percent to $ 0.7249, before falling to $ 0.7186.


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