The dollar edged higher against the euro on Wednesday, but fell against the yen after official data showed that U.S. durable goods orders dropped 5.7% in March, much worse than analysts expected. The data confirms a slowdown in manufacturing activity towards the end of the first quarter.
In a fairly flat day’s trading the dollar inched up against the euro in the morning session, with EUR/USD falling 0.09% to 1.2990, before recovering to 1.3019 at the close. Whilst edging lower against the yen, with USD/JPY trading down 0.09% to 99.37, off session highs of 99.77.
More Coverage of the Day’s Top Story
Investing.com:EUR/USD falls on U.S. data, ongoing talk of ECB rate cut. – The euro moved lower against the dollar on Wednesday after U.S. durable goods orders missed expectations, while ongoing talk that the European Central Bank may trim interest rates to kick-start recovery kept the single currency lower.
Forex News:Euro and yen – How much longer can key levels hold? – 1.30 in EUR/USD and 100 in USD/JPY are proving to be rock solid support and resistance levels. While the euro is currently trading below 1.30, the sell-off has been unconvincing and the pair has quickly magnetized back above this level on each occasion. USD/JPY on the other hand has yet to break 100 and the high for each attempt has been lower than the last. But is it only a matter of time before both levels are broken?
More Top Stories:
Trading Floor:Looking ahead: When does the 1.3000 magnet release EURUSD? – Looking ahead, look for the market to react to the German IFO survey result and this endless tiresome 1.3000 level in EUR/USD. Also look out for Napolitano out announcing his choice for prime minister, who will then be charged with trying to form a government. The market looks very complacent on this front, but I’ve no guidance there. A few ECB officials are out speaking later, with Weidmann the one to watch most closely.
Yohay Elam:In order to weaken the euro, the ECB should suspend the OMT. – Ex-ECB governing council member Athanasios Orphanides suggested that the ECB should consider suspending the OMT. Even a small hint about retiring the program could send bond yields screaming higher and add pressure for some reform. In addition, such a move could also weigh on the value of the euro, something the ECB made clear that it wants as well.
Investing.com:USD/CAD little changed after U.S. data. – The U.S. dollar was little changed against the Canadian dollar on Wednesday after official data showed that U.S. orders for long lasting manufactured goods fell unexpectedly in March.
Investing.com:GBP/USD holds gains, but upside seen limited. – The pound held gains against the U.S. dollar on Wednesday, although sterling’s upside seemed likely to remain limited ahead of U.K. data on first quarter economic growth on Thursday amid ongoing concerns over the outlook for the economic recovery.
FX Empire:Aussie rebounds after initial fall on inflation data. – The Australian dollar managed to rebound on Wednesday as the trading day progressed despite an earlier sharp fall against its US counterpart. The Aussie dropped on data that the country’s inflation did not match economists’ expectations for a steadier rise, giving scope for the Reserve Bank of Australia to ease its monetary policy.
Investing.com:What’s needed for the AUD/USD to break lower. – AUD/USD has been trading in the 1.01-1.06 range for close to 10 months. A break either way has to come eventually. Here we look at a few factors that could swing the currency pair to the downside in the weeks to come.
Investing.com:Gold shoots up to session high after U.S. durable goods data. – Gold futures rose sharply during U.S. morning hours on Wednesday, adding to strong gains after official data showed that U.S. durable goods orders fell unexpectedly in March, while core orders plunged, underlining concerns over the U.S. economic outlook.
Investing.com:Gold gains on growing talk of ECB rate cut, soft German data. – Gold prices firmed in U.S. trading on Wednesday after soft German business confidence data prompted a growing number of market participants to take up positions in the yellow metal amid building speculation of a European Central Bank rate cut.