Daily Forex Wrap: USD On Steady Downtrend
Talking Forex | Apr 23, 2015 10:58AM ET
Overview
The USD-index has remained on a steady downward trend from the get-go with a series of weak data in the form of US Manufacturing PMI M/M 54.2 vs. Exp. 55.7 (Prev. 55.7) and US New Home Sales (Mar) M/M 481K vs. Exp. 515K printing its largest fall since July 2013. The EUR shrugged off earlier eurozone PMI inspired losses and benefited from the greenback's decline after source reports suggested that an agreement between Greece and its creditors is nearing a deal and is expecting positive signs from tomorrow’s meeting in Riga. Furthermore, provided talks with Eurogroup officials continue at current pace there is a possibility of an agreement on bailout payments by the end of this month. Elsewhere, GBP/USD retraced all of its earlier losses induced by lacklustre UK retail sales after missing expectations with the ONS saying the 6.2% drop in fuel sales in March was the largest since April 2012. Additionally, the Conservative and Labour Party are still deadlocked with the election edging ever-so closer inducing continued uncertainty in the UK.
Overnight, dovish rhetoric from RBA Governor Assistant Governor stating that the RBNZ are considering a rate cut due to weaker demand and prices which caused NZD/USD to underperform. Separately, AUD/USD shrugged off the weak Chinese HSBC (LONDON:HSBA) Manufacturing Production (Mar) 49.2 vs. Exp. 49.6 data which came in at a 12-month low with the softer greenback offering support to the commodity-linked currencies heading into the European market close.
Looking ahead, tomorrow brings a light economic calendar with the highlights in the form of German IFO survey, US Durable Goods Orders and possible comments from BoJ Deputy Governor, SNB Governor Jordan, BoC Poloz and the European Finance Minister meeting.
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