Dollar Shows Mixed Trading Against Majors
During Asian deals on Thursday, the U.S. dollar showed mixed trading against its major counterparts. While the dollar soared to a 1-week high against the yen, it eased from a new multi-month high against the euro and a new multi-week high against the franc. Against the pound, the dollar strengthened slightly.
After the release of China’s gross domestic product and other economic data, the dollar surged up as market players took the data as confirming the recovery trend of the global economy.
But the dollar’s further rise was capped amid growing concerns that Chinese authorities could tighten their monetary grip, which in turn would slow down global economic recovery.
The US dollar strengthened to a 1-week high of 91.67 against the yen at 11:05 pm ET. The next upside target level for the US currency is seen at 92.1. At yesterday’s close, the dollar-yen pair was quoted at 91.28. As of now, the pair is worth 91.63.
The dollar that jumped to a new multi-month high of 1.4068 against the euro and a new multi-week high of 1.0471 against the franc by about 9:00 pm ET has moved off slightly thereafter. As of now, the dollar is worth 1.4093 against the euro and 1.0451 against the franc, compared to yesterday’s close of 1.410 and 1.0447, respectively.
At 9:30 pm ET Wednesday, the dollar rose to 1.6251 against the pound, moving from an early Asian session’s low of 1.6314. Since then, the pair moved sideways and is presently trading at 1.6265. The pound-dollar pair closed yesterday’s New York session at 1.6292.
Looking ahead, Swiss M3 money supply for December, ZEW report for January, U.K. M4 money supply for December and the ECB monthly report are expected in the upcoming European session.
Across the Atlantic, the U.S. weekly jobless claims for the week ended January 16, leading index for December and the results of the Philadelphia Federal Reserve’s manufacturing survey for January have been slated for release.
