FX round-up: Dollar weakened by surprise slump in US data
The dollar fell on Tuesday as a drop in the US markets superseded the results of the Greek election this weekend.
CMC Markets analyst Jasper Lawler said: “The disappointing durable goods data sent the US dollar lower across the board on Tuesday. The big miss of US durable goods added to the rally in sterling.”
“EUR/USD is back testing the November 2003 low from the downside after crashing through it just a few days ago as shorts get covered from the last ECB meeting.”
Chris Beauchamp from IG noted: “It has been almost two months since the euro saw back-to-back daily gains against the dollar, while sterling was able to puncture the $1.52 level again despite a GDP reading for the UK that was of rather mixed quality.”
Spreadex analyst Connor Campbell said: “. Ahead of an important FOMC statement tomorrow, today has further dented the argument for the Fed raising US interest rates this year. There are now rumours of a rate hike in March 2016, a far cry from the earlier date some were clamouring for at the end of 2014.”
The euro was worth $1.13617 Tuesday afternoon while the dollar index, which measures the US currency against a basket of six others, grew 0.24% to $94.31.
Meanwhile the dollar traded at ¥117.823, and the pound ended up at $1.52038.