USD Weakness Seen Ahead Of ISM Manufacturing Data

The dollar held losses versus most major peers as investors weigh whether U.S. economic data this week will affect the outlook for central bank policy.

The greenback remained lower following a two-day decline against the euro after Federal Reserve Chair Janet Yellen said the world’s biggest economy will need monetary stimulus “for some time.” Economists predict a report today will show a gauge of manufacturing climbed last month, while a private survey due tomorrow may indicate stronger jobs growth. The Australian dollar traded near a four-month high on bets Reserve Bank officials meeting today will refrain from cutting the cash rate.

“The dollar is looking softer across the board,” said Yuki Sakasai, a currency strategist in New York at Barclays Plc. “Yellen signaled that, while the Fed will continue tapering, they are not in a hurry to raise rates, and that was seen by the market as dovish.”

The dollar fetched $1.3774 per euro as of 8:58 a.m. in Tokyo after falling 0.2 percent in the previous two days to $1.3769 in New York. It was little changed at 103.22 yen after rising 0.4 percent yesterday. The euro bought 142.17 yen after advancing 0.5 percent to 142.13 in New York. The Australian dollar traded 0.1 percent higher at 92.69 U.S. cents. It touched 92.95 on March 28, a level not seen since Nov. 21.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu