The Poor Week for Dollar

MarketWatch - Dollar closed lower on Friday, the dollar index slipped 81.66% to 00:14. Throughout this week, the dollar index has plummeted 1:14% and a decrease in 3 weeks straight. Dollar began to fall on Friday after easing speculation the Federal Reserve will reduce monetary stimulus in September. Federal Reserve Chairman, Ben Bernanke, in his testimony last week emphasized the reduction time stimulus by the Federal Reserve is not determined exactly, all depending on the condition of the U.S. economy, and it is too early to say the Federal Reserve will reduce stimulus in September.

Throughout this week's U.S. economic data that was released not too support the dollar, the data existing home sales for June are released on Monday showed a decrease, followed by manufacturing index data in the mid-Atlantic region were released on Tuesday also dropped, resulting in dollar suffered a reduction of 3 consecutive sessions. Dollar finally rose on Wednesday after the PMI manufacturing data and new home sales came out better than expected, as well as rising U.S. Treasury yields pushed the dollar strengthening. But the revival lasted only a day, the dollar fell back after the data core durable goods orders and unemployment claims released worse than expected. Data released consumer sentiment rose to its highest level in 6 years last Friday was not much help strengthen the dollar, and the dollar remains weak seiiring investor focus has now turned to the Federal Reserve meeting and U.S. economic data next week.


News source: www.monexnews.com

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