The dollar weakened against its peers on Friday closing out the week down for the second week in a row as new economic data indicated that US recovery might be losing steam. The Commerce Department released figures which showed that durable goods orders declined 0.5% in March following a 2.2% decline in February. Home sales, retail sales and industrial production data released previously highlighted a draw down in economic growth beginning early this year which increased the greenback’s vulnerability causing the market to delay predictions for a Fed rate increase.
The market awaits a statement from the Federal Reserve due to be released on Wednesday for any indications as to when its key interest rate will be increased. Initial reading on US 1st quarter GDP and data on inflation, consumer confidence and manufacturing is also due to be released on Wednesday.
The euro strengthened against the dollar closing out the week having added 0.61%. The euro’s advances were curtailed as the Greek debt saga continues and doubt surrounding talks still remain. Euro zone finance ministers announced on Friday that in order for Greece to secure additional bailout funds the country must provide a complete set of economic reforms by early next month.
The pound strengthened against the weaker dollar having advanced 0.88% towards the close of Friday’s session to 5 week highs. The pound overlooked doubt surrounding results of upcoming elections in the UK which in all probability will see a hung parliament and a rocky coalition government. The pound had been supported earlier in the week after minutes from the Bank of England’s latest meeting revealed its expectation that inflation could bounce back this year. The UK is set to release data on industrial order expectations for its private sector.
Leading up to the release of US durable goods data the dollar strengthened against the yen with the pair coming off its lowest level since April 21. As the data disappointed the yen was able regain lost ground still trading within its tight range. The pair closed out the week virtually unchanged having pushed above its 120 handle.
The Australian dollar strengthened while the New Zealand dollar weakened against the greenback. The dollar trimmed losses against the Canadian dollar. New Zealand markets are closed on Monday for bank holiday.
Disclaimer: This information has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information.