Graphic Rewind: USD Sets A New Low Despite Manufacturing Improvements
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 04/30 to 12:00 05/01 EST
The Dow Jones FXCM US Dollar Index set a new 2-week low on the announcement of improved UK manufacturing activity before rebounding towards the daily open.
In the second half of Wednesday’s NY session, the Fed announced an additional 10 billion dollar taper of its monthly asset purchases and released a statement that publicized forward guidance mostly in-line with guidance from the March Fed meeting. The dollar initially spiked on the Fed release, before setting a new 9-day low.
In Thursday’s trading, the greenback posted losses on the announcement that the UK manufacturing PMI was nearly 2 points higher than expected for April. GBP/USD rallied 40 pips and set a new 5-year high following the release.
Despite the releases of US ISM Manufacturing and ISM Manufacturing Employment beating expectations, the US Dollar declined 10 points to an NY session low after the ISM announcement. Currency Analyst Christopher Vecchio attributed the decline to lingering disappointment from yesterday’s release of US GDP.
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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.