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Tuesday, March 3, 2015

Dollar inches lower on strong eurozone, U.K. data

Posted by PT KONTAK PERKASA FUTURES BALIKPAPAN On 4:48 PM No comments


The dollar inched lower against key rivals Tuesday after strong data out of Europe and the U.K. implied that economic growth in the rest of the world is beginning to catch up to the U.S.
The euro traded at $1.1175, compared with $1.1183 Monday evening, while the pound traded at $1.5363, compared with $1.5359.
The dollar also drifted lower against the yen, trading at ¥119.70, compared with ¥120.14.
Retail sales in Germany started the year strong, showing 5.3% annualized growth in February, up from a revised reading of 4.8% growth in January. Economists polled by The Wall Street Journal had expected 2.6% growth.
Tuesday’s retail-sales report is the latest in a string of economic reports to show surprisingly strong growth in the eurozone.
The U.K.’s Markit/CIPS U.K. Construction PMI showed the U.K.’s construction industry had another good month in February. The index printed at 60.1, its highest reading in four months. Economists polled by The Wall Street Journal had expected a reading of 59, a slight decline from the index’s January reading of 59.1.
Currency market volatility plummeted in February, with the dollar trading within tight ranges against the yen, euro and pound.
Dean Popplewell, vice president of currency analysis and research at Oanda Corp., said the market will be watching Friday’s jobs report for any surprises that could force the dollar back into its ranges.
The ICE U.S. Dollar Index a measure of the dollar’s strength against six of its largest trading partners, was down 0.06% on the day to 95.4090.
There was a dearth of U.S. economic data releases during Tuesday’s session. But U.S. car-sales figures, considered second-tier data by analysts, revealed a slight decline from January.
Source : MarketWatch

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