The US dollar slid as today’s macroeconomic reports from the United States were disappointing, leading to doubts if the Federal Reserve continues quantitative easing tapering or pauses stimulus trimming until economic growth becomes more stable.
The University of Michigan consumer confidence index unexpectedly dropped from 81.6 to 79.9 this month. Analysts have hoped for a small increase. The Producer Price Index fell 0.1 percent in February instead of rising 0.2 percent as was predicted.
The greenback rose against the euro yesterday as US data was good, but today’s reports made the US currency give away gains. The Fed will hold monetary policy meeting next week and traders wait anxiously to see what policy makers will do and say.
EUR/USD rose from 1.3867 to 1.1.3906 as of 19:35 GMT today. GBP/USD traded at 1.6631, near the opening level of 1.6622, following the drop to 1.6586. USD/JPY declined from 101.82 to 101.34, falling for fourth consecutive session.
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