During local trade the ‘Greenback’ declined against rivals including the Japanese Yen and Euro following the publication of a string of surprising US data.
The US Dollar Exchange Rate was trading in the region of 1.2910 against the Euro as of 14:15 GMT
Firstly, the US consumer price index slid by 0.4 per cent last month, 0.1 per cent more than economists had envisaged and following on from March’s 0.2 per cent decline. This is the first time US inflation has dipped for two consecutive months since the onset of the financial crisis in late 2008.
Secondly, separate reports showed that although building permits increased by 14.3 per cent in April, beating expectations and reaching the highest level achieved for almost five years, US housing starts plummeted by 16.5 per cent, the most significant drop for over two years.
However, the disparity in these results may be an indication that residential construction could be on its way to experiencing a rebound, as long as buyers continue to receive support from a gradually improving labour market and low mortgage rates.
Meanwhile, a separate report showed that Jobless claims reached their highest level since March.
In response to the six-week high in jobless claims one industry expert asserted: ‘It’s a reflection of what’s happening in the economy. Growth has slowed. We’re likely to see the labour market going sideways until there’s an improvement in demand.’
After the mixed batch of data was published economist Scott Brown commented: ‘This is going to be a very gradual recovery, and it’s going to be uneven.’
Similarly, currency strategist Camilla Sutton noted: ‘Everything that came out from the US was miserable. There was disappointment on every number that was released’.
The news resulted in the US Dollar edging away from the over four-year high achieved against the Yen yesterday and the American currency’s first slide against the Euro for six days.
The common currency had fallen to 1.2870 against the US Dollar earlier in the day as the Eurozone’s own inflation figure disappointed.
The most significant pieces of US news on the horizon for tomorrow are University of Michigan Confidence and Leading Indicator figures.
US Dollar (USD) Current Exchange Rates
< Down > Up
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6556 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7765 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0181 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.6100 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0169 >
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5267 >
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2910 >
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9822 <
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9832 <
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8153 >
(Correct as of 14:15 GMT)
Comments are closed.