Solid economic data helped to build momentum for the US Dollar, raising expectations of additional rate increases during the year. The US Dollar Index edged away from the recently struck multi-month low which occurred after President Donald Trump lost his bid to revamp the US healthcare system. It was reported yesterday that consumer confidence surged in March, hitting 125.6, far better than the 114 reading that had been expected by analysts; February’s reading was also revised higher to 116.1 from 114.8. Later today, pending home sales figures for February could also help sentiment for the greenback.
As reported at 10:20 am (BST) in London, the EUR/USD was trading at $1.0787, down 0.27%; the pair had earlier hit a trough of $1.0779 while the session high was set at $1.0826. The USD/JPY edged lower to 110.974 Yen, down 0.06%; earlier the pair had hit a low of 110.9500 Yen.
Sterling Pressured by Brexit Trigger
Sterling remains under pressure as Britain triggers its formal departure from the E.U. The GBP/USD pair held fast close to a 1-week trough as FX traders wait for Theresa May, the British Prime Minister, to file the official paperwork. The GBP/USD pair was down 0.15% to trade at $1.2437; the pair’s range during the session is $1.2378 at the low end and $1.2463 at the top. The EUR/GBP pair was also lower, trading at 0.8676 Pence, down 0.0786%.