Dollar Displays Strength Against Most Major Currencies

Trading 30 mar 2019 Commentaire »

The U.S. dollar displayed strength against major currencies and the Dollar Index has gained more than 1% in March, the best monthly performance in five months.

The dollar index rose to 97.34 and was hovering around 97.25 later on in the session, still holding above previous close.

The Pound sterling weakened against the greenback and was down 0.16% at $1.3028 after British Prime Minister Theresa May's Brexit withdrawal plan was rejected by the Parliament for the third time.

May's trimmed Brexit deal was defeated by a margin of 58 votes, much narrower than the earlier defeat earlier this month.

Now, the U.K. has time till April 12 to come up with a new plan. There will be a vote on Monday on alternative Brexit plans.

The greenback was up 0.17% against the Japanese yen, with a dollar fetching 110.81 yen. Earlier, the yen had weakened to 110.95 a dollar, from early high of 110.54.

The Euro was down as well against the U.S. dollar, falling marginally to $1.1219.

The Canadian loonie was trading at $1.3354 against the U.S. dollar, gaining over 6%, after data showed Canada's real GDP to have grown 0.3% in January, bouncing back after contracting in November and December, with 18 out of 20 industrial sectors moving higher.

Against the Swiss Franc, the dollar was down slightly at 0.9953.

In U.S. economic news today, personal income in the U.S. increased by slightly less than anticipated in the month of February, according to a report released by the Commerce Department.

The report said personal income rose by 0.2% in February after edging down by 0.1% in January. Economists had expected personal income to climb by 0.3%.

Another report from the Commerce Department showed new home sales surged up by 4.9% to an annual rate of 667,000 in February from the revised January rate of 636,000. Economists had expected new home sales to increase by about 1.3%.

With the increase in February, new home sales are at their high level since hitting a rate of 672,000 last March and up 0.6% compared to the same month a year ago.

Meanwhile, consumer sentiment in the U.S. improved by more than initially estimated in the month of March, according to a report released by the University of Michigan.

The report said the consumer sentiment index for March was upwardly revised to 98.4 from the preliminary reading of 97.8.

Economists had expected the index to be unrevised at 97.8, which would have still been above the final February reading of 93.8.

On the trade front, U.S. Treasury Secretary Steven Mnuchin said on social network Twitter that he and Trade Representative Robert Lighthizer concluded constructive trade talks in Beijing.

"I look forward to welcoming China's Vice Premier Liu He to continue these important discussions in Washington next week," he added.

The material has been provided by InstaForex Company -