The US dollar continued to demonstrate weakness, ending Friday with losses against most major currencies, as worse-than-expected macroeconomic data fueled the speculations that the Federal Reserve will refrain from stimulus tampering in the near future.
Basically, all Friday’s reports were rather bad. US industrial production fell by 0.1 percent in October. Import and export prices declined. The Empire State Manufacturing Index sank from 1.5 in October to -2.2 in November, indicating worsening conditions for the sector, while it was expected to rise to 5.2.
It would be really surprising if the Federal Reserve dares to reduce stimulus under such conditions. The dollar was falling because of all the negative news, but was able to gain on the yen, which was even weaker than the US currency.
EUR/USD rose from 1.3457 to close at 1.3489 and GBP/USD was up from 1.6063 to the closing price of 1.6111. At the same time, USD/JPY rallied from 100.00 to 100.20.
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