US Dollar Holding Strength Against Rival Currencies

By | June 4, 2015

The Pound remained trading in the region of 1.36 against the Euro on Thursday but could regain ground lost in the previous session as worries over Greece look set to weigh on the single currency. The UK currency could also experience movement due to the latest Bank of England quantitative easing and interest rate decisions.

The US Dollar rallied against peers like the Australian Dollar but was softer against the Pound as Wednesday’s data releases came in mixed. ADP payroll data showed that non-farm private employment rose by 201,000 last month, beating expectations for a rise of 200,000. In contrast, PMI reports released by Markit and ISM missed forecasts. Market attention will now be focused on today’s jobless claims data.

The Euro eased from yesterday’s two-week high against the US Dollar and pared gains made against the Pound as Athens rejected proposals put forward by its creditors. Talks went on throughout the night and rumours abound that the Greek government is planning to make a counter-offer. Despite the uncertainty, the Euro was holding its position on optimism that a deal will soon be reached.

The ‘Aussie’ gave up the gains it achieved on Wednesday due to the release of worse-than-forecast domestic retail sales data. According to the Australian Statistics Bureau, retail sales were flat in April, below expectations for a rise of 0.4%. Also weighing on the currency was a report which showed that the nation’s trade deficit widened in April.

The New Zealand Dollar softened as it followed its Australian relation lower. Further losses are likely if upcoming US jobless claims data beats forecasts and supports the US Dollar. Against its ‘Aussie’ relation the ‘Kiwi’ advanced as it took advantage of the soft Australian retail sales and trade balance data.

The ‘Loonie’ weakened against most of its major peers as oil prices fell on Thursday as a large crude glut overshadowed strong global fuel demand ahead of a meeting on Friday in which OPEC looks to be unlikely to change its production quota. Against the Euro the Canadian Dollar fell to a 3-month low. The currency also dropped to a 3-day low against the Japanese Yen.