15 Apr 2015
USD falls again, weighed by data
FXStreet (Córdoba) - The dollar was hit again on Wednesday by a string of disappointing domestic data while the ECB meeting was a non-event for the euro.
ECB President Draghi said the bank will conduct QE until the end of September 2016 and, in any case, until they see a sustained adjustment in the path of inflation and dismissed concerns that the bank may have to end its QE program early.
On the other side of the Atlantic, data showed US industrial production fell by 0.6% in March, worst than the 0.3% decline expected and following a slight increase of 0.1% in February. Separated data showed NY manufacturing business conditions deteriorated in April, with the NY Fed index falling to -1.19 versus +7.0 of consensus.
In afternoon trading, the Fed Beige Book was published. According to the report, US economy continued to expand across most regions from mid-February through the end of March, although headwinds from the stronger dollar, low oil prices and harsh winter weather were noted.
The dollar weakened across the board. EUR/USD rose to 1.0700 but failed to clear the resistance area, while GBP/USD climbed to a weekly high of 1.4852. USD/JPY fell through the 119.00 level and hit a low of 118.79.
Meanwhile, the CAD was among the best performers. The loonie benefitted from a relatively upbeat BoC statement and higher oil prices.
The BoC decided to keep its benchmark rate unchanged at 0.75% and anticipated that real GDP growth will rebound in the second quarter after stalling in the first quarter. The CAD was also underpinned by crude oil that rose above $57/bbl to YTD highs after the EIA informed that inventories rose less than expected by 1.3 million barrels in the week ended on April 10th, to 483.7 million barrels.
AUD/USD rose to a high of 0.7700 before finding resistance. During the Asian session, attention will turn to Australian employment report with consensus pointing to a 15K job gain.
US stocks gained on the back amid better-than-expected earnings and higher oil prices.
ECB President Draghi said the bank will conduct QE until the end of September 2016 and, in any case, until they see a sustained adjustment in the path of inflation and dismissed concerns that the bank may have to end its QE program early.
On the other side of the Atlantic, data showed US industrial production fell by 0.6% in March, worst than the 0.3% decline expected and following a slight increase of 0.1% in February. Separated data showed NY manufacturing business conditions deteriorated in April, with the NY Fed index falling to -1.19 versus +7.0 of consensus.
In afternoon trading, the Fed Beige Book was published. According to the report, US economy continued to expand across most regions from mid-February through the end of March, although headwinds from the stronger dollar, low oil prices and harsh winter weather were noted.
The dollar weakened across the board. EUR/USD rose to 1.0700 but failed to clear the resistance area, while GBP/USD climbed to a weekly high of 1.4852. USD/JPY fell through the 119.00 level and hit a low of 118.79.
Meanwhile, the CAD was among the best performers. The loonie benefitted from a relatively upbeat BoC statement and higher oil prices.
The BoC decided to keep its benchmark rate unchanged at 0.75% and anticipated that real GDP growth will rebound in the second quarter after stalling in the first quarter. The CAD was also underpinned by crude oil that rose above $57/bbl to YTD highs after the EIA informed that inventories rose less than expected by 1.3 million barrels in the week ended on April 10th, to 483.7 million barrels.
AUD/USD rose to a high of 0.7700 before finding resistance. During the Asian session, attention will turn to Australian employment report with consensus pointing to a 15K job gain.
US stocks gained on the back amid better-than-expected earnings and higher oil prices.