Daily Afternoon Report 21.04.2015

Daily Afternoon Report 21.04.2015
The dollar trimmed gains against a basket of other major currencies on Tuesday, but remained supported as the greenback continued to recover from the previous week’s disappointing U.S. data. The dollar regained some strength after a recent string of soft economic data dampened optimism on the U.S. recovery, adding to uncertainty over the timing of a rate hike. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.11% to 98.27, down from highs of 98.69 hit earlier in the day. EUR/USD was down 0.25% at 1.0713, off session lows of 1.0661. The euro remained under pressure after the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 1.5 points to 53.3 this month from March’s reading of 54.8. Analysts had expected the index to improve by 0.5 points to 55.3 in April. However, the index of euro zone economic sentiment increased to a 14-month high of 64.8 in April from 62.4 in March, above forecasts for a gain to 63.7. Sentiment on the single currency also remained fragile amid concerns that Athens is no closer to reaching an agreement on economic reforms for bailout funds with its creditors, fuelling fears that Greece could be forced out of the euro zone. The pound was steady, with GBP/USD at 1.4903, after falling to 1.4856 earlier in the session.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.14% to 119.35 and with USD/CHF adding 0.13% to 0.9575. The Australian and New Zealand dollars were higher, with AUD/USD rising 0.30% to 0.7747 and NZD/USD gaining 0.63% to 0.7710. The Reserve Bank of Australia earlier said in the minutes of its April meeting that “it was appropriate to hold interest rates steady for the time being” but added that “further easing of policy may be appropriate over the period ahead” to bolster growth. Meanwhile, USD/CAD was almost unchanged at 1.2220.

Leave a Reply

Your email address will not be published.