US Session – Dollar weakens after disappointing ISM data
April 1, 2013 8:10 pm
The dollar was broadly weaker on Monday, accelerating declines after disappointing US manufacturing data. The Institute for Supply Management (ISM) index of factory activity dropped in March to 51.3 from 54.2, missing estimates of a reading of 54.2 points.
The soft data ended the recent enthusiasm in the dollar, which had enjoyed a sharp rally as evidence mounted that the US economy is on a stable path to recovery.
Dollar fell against the yen to 95.15 yen, down 0.9 percent on the day. Against the euro, dollar weakened as well, giving EURUSD a lift to $1.2867, up from an intraday low of $1.2770. This was the highest the pair has reached since March 26.
Euro had a turbulent past two weeks due to concerns on the euro zone debt crisis and the Cyprus bailout. Meanwhile, the single currency remains vulnerable as focus turns to Italy, where the nation has been without a government for over a month now.
Euro fell against the yen, losing 0.5 percent today, as the safe haven Japanese currency gained due to risk-off sentiment which began today with weaker-than-expected manufacturing PMI data from China.
EURJPY touched lows of 119.48 earlier in the day but steadied to around 120.00 in the late US session.
Market attention will be on the Bank of Japan policy meeting on Thursday. The central bank is widely expected to increase its bond buying under new Governor Haruhiko Kuroda, who has pledged to adopt more aggressive monetary easing measure to stimulate the economy.
The dollar was broadly weaker on Monday, accelerating declines after disappointing US manufacturing data. The Institute for Supply Management (ISM) index of factory activity dropped in March to 51.3 from 54.2, missing estimates of a reading of 54.2 points.
The soft data ended the recent enthusiasm in the dollar, which had enjoyed a sharp rally as evidence mounted that the US economy is on a stable path to recovery.
Dollar fell against the yen to 95.15 yen, down 0.9 percent on the day. Against the euro, dollar weakened as well, giving EURUSD a lift to $1.2867, up from an intraday low of $1.2770. This was the highest the pair has reached since March 26.
Euro had a turbulent past two weeks due to concerns on the euro zone debt crisis and the Cyprus bailout. Meanwhile, the single currency remains vulnerable as focus turns to Italy, where the nation has been without a government for over a month now.
Euro fell against the yen, losing 0.5 percent today, as the safe haven Japanese currency gained due to risk-off sentiment which began today with weaker-than-expected manufacturing PMI data from China.
EURJPY touched lows of 119.48 earlier in the day but steadied to around 120.00 in the late US session.
Market attention will be on the Bank of Japan policy meeting on Thursday. The central bank is widely expected to increase its bond buying under new Governor Haruhiko Kuroda, who has pledged to adopt more aggressive monetary easing measure to stimulate the economy.
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