The U.S. dollar dropped today against the euro as the macroeconomic indicators added to the evidences that the U.S. economic recovery is slowing, decreasing the appeal of the greenback as the safe currency.
Nonfarm payrolls were worse than expected, posting the 125,000 decline in June, compared to the forecast drop by 106,000. New orders for manufactured goods decreased 1.4 percent in May, following eight consecutive monthly increases, while the median forecast was a decline by only 0.5 percent. The slight decline of the unemployment rate hardly can offset the bad news.
Every new day reinforces the concern: can the U.S. currency be considered as the safe haven, is it safe enough? For now, the outlook remains rather grim.
EUR/USD traded at 1.2568 as of 16:05 GMT after opening at 1.2525. GBP/USD traded near its opening level of 1.5173.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.
Be First to Comment