Risk assets were barely sought throughout the session on Wednesday, particularly with growing fears the global economy is trailing the track of recovery.
First, we watched the U.K. economy shrink in the fourth quarter,then a governmental report showed weaker than estimated demand on the U.S. durable goods in February. booking for long-lasting manufactured goods rose 2.2 percent, durables ex-transportation gained 1.6 percent, each below forecast.
The U.S currency was strongly supported by the looming concerns about slowing gloabl gorwth and of course lured as the Federal Reserve once more called for keeping an accommodative monetary policy for the near future. So far, the U.S. currency is the safe haven for today.
The dollar index, which tracks the performance of the U.S. currency against six of its most-traded counterparts including the euro, the pound and the Japanese yen, up around 79.21 after scoring a daily high of 79.31. The Index started the day at 79.14 and printed a low of 78.88.
Gold spot prices retreated significantly on Wednesday, as the metal traded around $1659.25 an ounce from the opening price of $1680.40. Oil futures for May delivery slumped as well to trade around $105.31 a barrel after the recording a daily low of $104.68 from the opening price of $106.75.
The 17-nation common currency pared earlier loss against the greenback after recording daily low of $1.3275 and currently trades around $1.3312. The EUR/USD started the session at $1.3312 and posted a daily high of $1.3373.
The British pound was hurt by the downbeat U.K. data and extended drop against its U.S. counterpart, sending the GBP/USD to trade at $1.5883 after kissing a deep low of $1.5841. The pair started at $1.5949 and tapped a high of $1.5963.
The greenback fell against the yen amid speculation of stronger demand on the Japanese currency before the final exchange-rate fixing of the fiscal year. Thus, the dollar was beaten to trade around 82.74 yen after the USD/JPY printed a daily low of 82.95 yen. The pair started at 83.14 yen then tested a high of 83.21 yen.