US Dollar Faces Pressure With Disappointing Economic Data
By Anatol Thomas
The rally of the US dollar has come to an end, especially after President Donald Trump commented that the strengthening of the dollar is not good for the economy. Investors are worried about the geopolitical conditions that affect the relationship of the USA with other countries such as Syria and North Korea. The value of US dollar hasn’t changed much against the major global currencies.
Earlier, Trump had announced that the trade deal that the US currently has with South Korea is horrible and that it should be renegotiated or terminated. He also added that the US may have a strong conflict with North Korea. As a result of these jittery political conditions, the dollar remained unchanged.
The economic data was announced later which was disappointing, considering that the investors were hoping for a boost in economic growth. However, the dollar rose slightly against the basket of international currencies despite the disappointment. The US dollar index increased by 0.15% and reached 99.00. According to the economic report, the Home sales fell down. Also, Durable Goods Orders and Jobless Claims also did not reach the expected levels. The Pending Home Sales index lost 0.8% to reach 111.4.
The state unemployment claims increased by 14000 to reach 257,000 for the week. The US durable goods new orders increased by 0.7% even though the expected raise was 1.2%. In February, the rise was 2.3% which makes the fall much sharper. The market was not heavily affected by the economic data because investors are focused on tax proposal plan.
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