US dollar is softening today, thanks to better than expected economic news. Factory orders rose more than expected, and that is providing a bit of a boost for markets after yesterday’s disappointing manufacturing index data.
Greenback has turned lower, thanks to the better news, and to a bit of risk appetite, as shown by modestly higher equity markets. The factory orders report for may has a lot to do with it. New orders for manufactured goods rose 0.7 percent in May, as opposed to the predicted 0.2 percent. This report from the Commerce Department has helped push toward a return to risk appetite.
However, even with the softer US dollar, big moves aren’t expected today — or tomorrow. US markets will be closing early today, and tomorrow they will be closed for the Independence Day holiday. The result is that large movements are not expected. And, indeed, the currency markets will also be awaiting the rate decisions from the BOE and ECB, to come later this week. There just isn’t much happening right now to prompt big changes.
At 14:27 GMT EUR/USD is up to 1.2584 from the open at 1.2579. GBP/USD is lower, though, down to 1.5686 from the open at 1.5692. USD/JPY is higher at 79.8470, up from the open at 79.5160.
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