The U.S. Dollar’s recent rally in the wake of last week’s upbeat labor data has waned during Asian trade. Analysts say that with U.S. corporate earnings reports due out this week, investors have turned cautious and pushed U.S. Treasuries lower which then put pressure on the greenback.
As reported at 10:12 a.m. (JST) in Tokyo, the U.S. Dollar Index slipped from a 1½ week high to trade at 80.218 .DXY from 80.359 .DXY. The EUR/USD edged higher to $1.3600, but remains with striking distance of yesterday’s low of $1.3576 while the USD/JPY traded lower at 101.84 Yen. The AUD/USD edged higher to $0.9363, moving off of last week’s 2-week low at $0.9327.
German Data Pushes Euro Lower
Though it managed to eke out gains against the U.S. Dollar, the common currency Euro otherwise struggled after it was learned yesterday that industrial output in Germany, the Eurozone’s economic power house, unexpectedly slumped in May, with the reading plummeting to negative -1.8 against expectations of a rise to 0.3 from negative -0.3 in April. That disappointment from the largest economy in the Eurozone has raised investors’ expectations that the European Central Bank is likely to increase its level of accommodation over the coming months.