All the pieces of the data show that the US economy is slowing confirming that the economy is only heading towards a recession and with inflation pressure high, stagflation can be a possible scenario affecting the dollar in a negative way which makes the currency loose more value everyday against major currencies.
After a slight drop, the European currency spiked higher against its major counterparts. The calendar today was full of EU data showing a mixed signal of data yet still considered relatively weak data. However, the dollar slid against the euro as the European currency was lifted by a positive survey indicating that the business activity improved unexpectedly. The pair was therefore pushed by the news to record at this hour a high of 1.4863 and a low of 1.4788.
Meanwhile, the pound continues its upside trend pushing the pair to the upside to record a high of 1.9709 and a low of 1.9610, particularly after the UK retail sales in January came in more stronger than expectations giving the BOE the room to ease in cutting rates.
Finally, the Japanese yen strengthened against the dollar as the dollar continues to weaken amid slowing economic growth and inflationary pressure showing an uptrend which pushed the pair to the downside along with the greenback to record at this hour a low of 106.86 after recording a high of 107.57
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