Back
5 May 2015
USD weakens following trade data
FXStreet (Córdoba) - The dollar fell across the board on Tuesday hurt by disappointing US trade data. The trade deficit widened beyond expectations to $51.37 billion in March, reaching its highest level since 1996.
Even though upbeat ISM services PMI (57.8 vs 56.2) gave the greenback a brief breather, the US currency came under renewed pressure and hit lows versus major peers. EUR/USD rose more than 150 pips throughout the day and peaked at 1.1222 during the American session before steading around 1.12.
GBP/USD managed to advance above 1.52 and reached a 4-day high despite uncertainty over UK general elections. USD/JPY broke below 120.00 after being rejected from the 120.50 zone, while USD/CHF fell to a 3-month low of 0.9237.
Currencies linked to commodities managed to rally versus the greenback. The Australian dollar shrugged off a RBA rate cut, which was already priced-in, while the loonie was underpinned by crude that posted fresh 2015 highs and approached $62 a barrel.
Elsewhere, stocks slumped in Wall Street. The DJIA lost 0.79%, the S&P dropped 1.16% while the Nasdaq shed 1.55%.
Looking ahead, New Zealand employment data, Australian retail sales and Chinese services PMI will be key data during the Asian session. Japan market's will remain close in observance of the Constitution day.
Even though upbeat ISM services PMI (57.8 vs 56.2) gave the greenback a brief breather, the US currency came under renewed pressure and hit lows versus major peers. EUR/USD rose more than 150 pips throughout the day and peaked at 1.1222 during the American session before steading around 1.12.
GBP/USD managed to advance above 1.52 and reached a 4-day high despite uncertainty over UK general elections. USD/JPY broke below 120.00 after being rejected from the 120.50 zone, while USD/CHF fell to a 3-month low of 0.9237.
Currencies linked to commodities managed to rally versus the greenback. The Australian dollar shrugged off a RBA rate cut, which was already priced-in, while the loonie was underpinned by crude that posted fresh 2015 highs and approached $62 a barrel.
Elsewhere, stocks slumped in Wall Street. The DJIA lost 0.79%, the S&P dropped 1.16% while the Nasdaq shed 1.55%.
Looking ahead, New Zealand employment data, Australian retail sales and Chinese services PMI will be key data during the Asian session. Japan market's will remain close in observance of the Constitution day.