Daily Afternoon Report 27/04/2015
The dollar pared gains against a basket of other major currencies in subdued trade today, after the greenback mildly recovered from Friday’s downbeat U.S. data and as markets began to focus on the Federal Reserve’s policy statement due on Wednesday.
The dollar had come under pressure after the Commerce Department reported Friday that orders for durable goods, excluding aircraft, fell 0.5% in March, after a downwardly revised 2.2% drop in February. The headline figure rose 4.0%, beating expectations for a 0.6% gain, but investors focused on underlying weakness in the report. The data came after recent weak reports on home sales, retail sales, and industrial production, adding to signs of a slowdown in economic growth since the start of the year. The weak data led investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 97.13.
Elsewhere, Euro remained under pressure after euro-area finance ministers said Friday that Greece must present a full economic reform plan by early May in order to access any further funding.
The Confederation of British Industry earlier reported that its index of industrial order expectations increased by 1.0 point to a reading of 1.0 this month from March’s reading of 0.0.