The dollar slipped against majors which are still pressured by the minutes from the Feds meeting which avowed expectations of further US interest rate cuts. Markets have priced a 50bp cut in March which would further erode the dollar's appeal to investors.
As for the euro, the European currency edged up against the US dollar ahead of new forecasts by the European Union on how fast the region will grow this year. Aside of that the dollar undermined on weak US economic data pushing the EUR/USD pair to the upside to fetch a high of 1.4799 and a low of 1.4702.
Meanwhile, the British Pound surged today recording a high of 1.9597 and a low of 1.9410 boosted by data on UK retail sales for January that came in higher than expected. Sterling spiked on the data which gave an indication that the Bank of England have room to slow the pace of interest rate reduction.
After the slump in the global credit crunch the New Zealand has risen steadily as the US dollar weakened and as the Feds lowered rates, providing New Zealand rates with a significant premium. As for today, the New Zealand dollar was trading about $0.7975. The reason behind the success of the NZD is basically the high interest rates which made the currency a major destination for yield-hungry investors.
Elsewhere, the Canadian dollar was almost unchanged against the weaker dollar as investors remained concerned that the US economic downturn would spill across the border.
On the other end, the yen rose against the dollar, reversing a decline as the dollar weakened on worse than expected data pushing the pair to the downside to record at this hour a low of 107.49 after recording a high of 108.31
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