The dollar strengthened against its peers today up over 1% to a 3 week high following the release of a series of US economic data which shifted focus away from Federal Reserve Chair Yellen’s comments this week. US jobless claims for the week ending February 21 totaled 313,000 up from 282,000 for the previous week. Durable goods orders rose by 2.8% in January while an increase of 1.7% was forecast. Core durable goods orders compounded expectations of a 0.5% increase ticking up 0.3% in January. US consumer prices dropped by 0.7% in January while a decrease of 0.6% was forecast. Core consumer prices rose 0.2% in January while an uptick of 0.1% was forecast.

The euro weakened considerably against the dollar falling over 1.3% on the back of better than forecast increase in US durable goods. The euro was hardly affected by data which revealed that the total of unemployed individuals in Germany dropped by 20,000 in February while a decrease of 10,000 was forecast. Matching forecasts Germany’s unemployment rate remained at 6.5% in February. German Gfk consumer climate index beat forecasts of 9.6 increasing from 9.3 in January to 9.7 in February. The euro was still being weighed down by uncertainty as to whether Greece will keep its bailout extension due to not abiding by its proposals.

The pound weakened against the dollar coming off its 2 month high with the pair falling over 0.75%. The Office for National Statistics released data which revealed that UK’s GDP grew by 0.5% in the last quarter of 2014 matching forecasts. UK GDP added 0.7% in the 3rd quarter of last year. UK business investment dropped by 1.4% in the last quarter of 2014 compounding expectations of a 1.9% increase after a 1.2% decrease in the previous quarter.

The yen weakened against the dollar with the pair adding over 0.5% trading back over its 119 handle as US durable goods data neutralized the decline in inflation and rise in jobless claims benefits. The yen had been pressured earlier in the session following remarks from Bank of Japan’s Ishida which highlighted that reaching short term 2% target for inflation should not be the primary goal and basis for amending policy and that achieving long term stability should be the overall focus.

The Australian, New Zealand and Canadian dollars weakened against the dollar as US data supported the greenback. Figures released out of Canada revealed that consumer prices dropped by 0.2% in January while a decrease of 0.3% was forecast following a decline of 0.7% in December. Core consumer prices increased by 0.2% in January ahead of forecasts for an increase of 0.1% following a 0.3% decline the previous month.

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.