The Dollar swung after being near a one-month low against the 16-nation common currency after factory orders in the U.S. rose below forecast in February and before the Federal Open markets Committee releases minutes of its March 13 meeting.
The U.S. Commerce Department, Bureau of the Census reported today in Washington that new orders of the U.S. durable and non durable goods increased 1.3 percent in February, from a revised 1.1 percent decrease in January, but unexpectedly missing forecast.
The 17-nation common currency also slipped from its highest levels in a while as Spanish bond yields rose and the euro zone's unemployment rate notched up for an eighth month. Still, the euro may get the chance to restore earlier losses should its U.S. counterpart dip further.
Risk sentiments are locked at the moment as traders look up to the upcoming minutes of the latest policy meeting of the Federal Reserve, where the FOMC upgraded their assessment of the economy as well as favored to extend its interest rate pledge.
On March 26, Fed Chairman Ben S. Bernanke said further stimulus may not be ruled out to further reduce unemployment and should the economy run out of steam. Undoubtedly, hinting about further monetary easing could be good to tame back the dollar against the euro.
Meanwhile, the dollar pared earlier gain after printing a daily high of 78.99 to trade around 78.86. The index that tracks the performance of the U.S. dollar against six of its counteraprt started the day at 78.85 and recorded a low of 78.66.
The euro picked up then steadied against its U.S. counterpart, leaving the EUR/USD around $1.3330 after hitting a daily low $1.3279. The pair started the day at $1.3320 and printed a daily high around $1.3367.