Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

FOREX-Dollar close to one-month high after upbeat U.S. data

Published 02/03/2016, 03:21 pm
© Reuters.  FOREX-Dollar close to one-month high after upbeat U.S. data
EUR/USD
-
USD/JPY
-
AUD/USD
-
USD/CAD
-
EUR/JPY
-
US500
-
DX
-
DXY
-

* Encouraging U.S. data whets risk appetite

* ECB easing expectations pressure euro

* Aussie dollar jumps after GDP data

By Lisa Twaronite and Ian Chua

TOKYO/SYDNEY, March 2 (Reuters) - The dollar was steady against a basket of currencies in Asia on Wednesday, not far from the previous session's one-month high touched after brighter economic data rekindled expectations that the U.S. Federal Reserve could raise interest rates this year.

Encouraging U.S. factory and construction data offered hope the economy was regaining momentum. That helped U.S. stocks .SPX stage their biggest one-day rise in a month and close at their highest since early January. the dollar index, which measures the greenback against a basket of six major rivals, pulled ahead and was last at 98.377 .DXY , up slightly from the previous day and not far from its overnight peak of 98.570.

But the dollar is also vulnerable to profit-taking on any rise, market participants said, as investors await more U.S. data for confirmation that the economic recovery was sure-footed.

"Not so many people are confident about the U.S. economy and global markets, so the dollar will be rangebound for now," said Masashi Murata, senior currency strategist at Brown Brothers Harriman in Tokyo.

Currency markets had a muted reaction to the outcome of "Super Tuesday" state-by-state primary voting, at which Republican Donald Trump and Democrat Hillary Clinton notched a series of wins that took them a step closer to their respective parties' nominations in the U.S. presidential campaign. is more focused on the domestic economy than the global economy, but still, it's too early to price anything into market positions," Murata said.

The dollar lost some ground against the yen as investors locked in gains after the U.S. unit rallied to a nearly two-week high of 114.185 JPY= . It last stood at 113.86, down about 0.1 percent.

The yen's gains were held in check by talk of more stimulus from Japanese authorities, though this time the chatter centred on fiscal measures, rather than monetary policy action. Europe, investors braced for further easing from the European Central Bank (ECB) at next week's review. ECB President Mario Draghi on Tuesday said the meeting would have to take into account weaker prospects for growth and inflation. common currency edged down about 0.1 percent to $1.0860 EUR= , within sight of a one-month trough of $1.0834 set on Tuesday.

The euro slipped about 0.2 percent to 123.66 yen EURJPY=R , moving back toward a near three-year trough of 122.085 set overnight.

Business surveys outside the United States kept alive fears about global growth momentum, with manufacturing output across much of Asia shrinking in February and waning throughout Europe. the best performing major currencies was the Canadian dollar, which scaled a three-month peak of C$1.3387 CAD=D4 against its U.S. counterpart on Tuesday after economic growth data beat forecasts. The dollar took back some of that ground in Asian trading, adding about 0.1 percent to buy C$1.3424.

The Aussie was trading solidly above 72 U.S. cents to $0.7220 AUD=D4 , having drifted up from Tuesday's low near 71 cents before data showed Australia's economy outpaced all forecasts to grow at the fastest pace in almost two years last quarter. (Editing by Richard Pullin & Shri Navaratnam)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.