US Dollar Dips Despite Data

17 February 2017 8:24:24 AM

By: DailyForex.com

The US Dollar Index remains fixed and close to a 1-week trough despite unexpectedly upbeat economic data which failed to give US Treasury instruments a yield boost. The Index is generally used by FX traders to assess the relative strength of the greenback versus a weighted basket of major peers. Earlier this week, the Index had briefly touched a 1-month peak which occurred after the head of the Federal Reserve Bank spoke of the possibility of a near-term interest rate increase. Yesterday, the Philadelphia Federal Reserve Bank released its monthly manufacturing survey which surged to a 33-year peak in February with a reading of 43.3 against expectations of a fall to 18.

As reported at 10:22 am (JST) in Tokyo, the GBP/USD was trading at $1.25, up 0.12% while the EUR/USD was flat at $1.0669. The AUD/USD was up by 0.15% to trade at $0.7704 while the NZD/USD was up 0.04% to trade at $0.7218.

Growing Investor Concern Over Trump

According to some analysts, the Dollar’s struggle suggest that the FX market is still assessing Trump’s policies, and in particular his trade policies which might not support a strong Dollar. The latest troubles in the Trump administration, including Thursday’s disjointed press conference, are also weighing on sentiment.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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