The dollar weakened against its peers today on thin volume after having gained ground following weak US data released on Friday which put pressure on the greenback while investors looked towards remarks from the Federal Reserve due on Wednesday. Dollar sentiment was diminished following Friday’s durable goods orders data which revealed a 0.5% decline in March following amended figures for February which saw a 2.2% decrease. The market has delayed predictions for a rate increase by the Fed as a result of disappointing US data of late and will look for indications as to the timing in the Fed’s upcoming statement.

The euro held its ground against the dollar after having weakened earlier in the session coming off lows of 1.0820. Outlook on the euro was still vulnerable due to the possibility that Greece could be ejected from the euro zone. With Greece’s debt saga still far from reaching a conclusion officials have yet to reach an agreement. In order for Greece to secure additional bailout funds the country has to outline a complete plan for economic reform by the beginning of next month.

The pound held its ground against the dollar coming off lows of 1.5107 set earlier in the day. The pound had weakened earlier in the session following the release of data by the Confederation of British Industry which revealed that its industrial order expectations index increased from a reading of 0.0 in March to 1.0 in April compounding expectations. Experts had forecast an increase to 4.0 in April.

The yen weakened against the dollar with the pair still trading in its tight range of less than 1 big figure. Fitch downgraded Japan’s rating which weakened the yen sending the pair to today’s session high of 119.43. The pair’s wider range of 118 to 121 still remains untested. The pair could see a breakout following the release of the Fed’s statement on Wednesday.

The Australian, New Zealand and Canadian dollars strengthened against the greenback. The Aussie and kiwi dollars gained roughly 0.5% while the loonie added around 0.6% as dollar demand was diminished and the market questioned the state of US economic recovery. Gaining oil prices is also pushing these commodity associated currencies higher.

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