The U.S. dollar slid to a three-week low against the yen before data tomorrow that economists said will show U.S. retail-sales growth slowed, strengthening the case against faster tapering by the Federal Reserve.
The Bloomberg Dollar Spot Index dropped for a third day after a report last week showed the U.S. added fewer workers in December than the most pessimistic projection in a Bloomberg News survey. Australia’s dollar climbed to a one-month high after home-loan growth exceeded analysts’ forecasts. The rand fell the most against the dollar and yen among 16 major currencies before a report tomorrow analysts said will show South African mining-production slowed.
“There are some occasional weak data-points, but the growth in the U.S. economy is far from being in doubt,” said Andrew Wilkinson, the Greenwich, Connecticut-based chief market analyst at Interactive Brokers LLC. “In the longer run, we’ll see dollar-yen trade at 110. There’s nothing changing in the overall picture, just that too many people have gotten on one side of the boat.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.