The US dollar performed rather well during the first session of the current trading week, undeterred by some negative economic reports from the United States. The currency kept yesterday’s gains today.
The Empire State manufacturing index showed an abysmal reading of -14.9 in August, which was far below the previous month’s figure of 3.9. Forecasters had completely missed the point, promising an increase ahead of the data. The dollar had slipped after the report but has recovered rather quickly.
The major event for the currency this week should be the release of the minutes of the latest Federal Reserve policy meeting. Traders wait for the notes in hope to discover the Fed’s thoughts regarding its monetary policy in the near future. It is important to remember, though, that the minutes will not take into account the recent troubling news from China that have likely affected the Fed’s plans.
EUR/USD dropped from 1.1112 to 1.1077 yesterday and remained at about that level as of 2:18 GMT today. GBP/USD traded near the yesterday’s close of 1.5582 while the opening was at 1.5650. USD/JPY advanced from 124.18 to 124.38 on Monday and continued its move up today, rising to 124.45.
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