The dollar remained on the downside against its peers today on thin volume traded as oil continued on its downward spiral and as worry surrounding global economic growth lingered.  The market stayed watchful as uncertainty over global economic growth intensified on the back of manufacturing activity data released out of China which revealed drawdowns in output for 6 months in a row in January.  The US dollar index was down 0.15% trading at 98.90.    

The euro strengthened against the dollar with the pair up 0.3% trading at 1.0914 off its session low of 1.0882 after having come off its session high of 1.0939 reached earlier in the day.  Euro zone unemployment dropped from a rate of 10.5% in November to 10.4% in December while experts forecast unemployment to be unchanged at 10.5% setting a 4 year plus low.  Germany’s unemployment rate dropped from 6.3% in December to 6.2% in January while experts forecast the rate to be unchanged.  The number of jobless individuals in Germany declined by 20,000 in December beating forecasts of a decline of 7,000 while jobless claims decreased by 16,000.    

The pound weakened against the dollar with the pair down 0.2% trading at 1.4417 off its session high of 1.4445 after having come off its session low of 1.4325 reached earlier in the day.  The pound was pressured following the release of data from Markit which revealed that its UK construction purchasing managers’ index dropped from a reading of 57.8 in December to 55.0 in January marking a 9 month low.    Analysts forecast the index to drop to 57.5 in January. 

The yen strengthened against the dollar with the pair down 0.7% trading at 120.13 off its session low of 120.02 after having come off its session high of 121.03 reached earlier in the day.  The yen was supported by safe haven demand as oil declined over 5% near $30 barrel following news that Iran intends to ramp up exports to 2.3 million barrels per day.   

The Australian, New Zealand and Canadian dollars weakened against the greenback.  The Aussie was down 0.91% against the dollar with the pair trading at 0.7050 off its session low of 0.7039 after having come off its session high of 0.7129 reached earlier in the day.  The Reserve Bank of Australia kept its key interest rate at 2.00% as was broadly anticipated by the market.  The central bank stated that softer inflation could provide the landscape for more flexible monetary policy.  The kiwi dollar declined 0.9% against the greenback with the pair trading at 0.6484 off its session low of 0.6462 after having come off its session high of 0.6554 reached earlier in the day.  The kiwi was pushed lower as concerns over an economic slowdown in China continued to weigh in.  The loonie retreated over 1% against the greenback with the pair trading at 1.4017 off its session high of 1.4081 after having come off its session low of 1.3934 reached earlier in the day.  The commodity associated loonie was pressured by decreasing demand as a result of falling oil prices.      

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.