Graphic Rewind: USD Climbs Higher on Data Driven EUR and GBP Weakness
- US Dollar Index gains on EUR and GBP weakness
- Tomorrow’s data may change the course of greenback trading
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 04/28 to 12:00 04/29 EST
The Dow Jones FXCM Dollar Index found some strength in the middle of Tuesday’s London session on a combination of weaker than expected data out of Germany and the United Kingdom.
The US Dollar gained over 40 pips against the British Pound after the release of UK GDP for the first quarter. The United Kingdom economy expanded by 0.8% in Q1, disappointing expectations for 0.9% growth.
The greenback went on to take another 45 pips of gains against the Euro as New York traders came online. German inflation set a 3-month high in April, but still fell short of expectations. The ECB has warned that it may purchase assets if a slowdown in price gains hurts the Euro-zone recovery.
The Dollar set a new 3-day high at 10,478 after the German CPI release, and the index may continue to see volatility in tomorrow’s busy US economic calendar. Chief Strategist John Kicklighter says tomorrow’s events may not only alter expectations for US Dollar trading but also the direction of risk trends.
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-- Written by Baruch Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.