Source: ForexYard
The US dollar moved up vs. virtually all of its main currency rivals yesterday, following negative data out of the UK and Japan which caused investors to shift their funds to the greenback. A worse than expected UK CPI figure resulted in the GBP/USD tumbling close to 85 pips during the European session. The pair reached as low as 1.5762 before staging a slight upward correction during afternoon trading. Against the JPY, the dollar was able to benefit after Fitch Ratings downgraded Japan’s credit score. The USD/JPY shot up over 60 pips following the news to come within reach of the psychologically significant 80.00 level.
Turning to today, dollar traders will want to pay attention to the US New Home Sales figure, scheduled for 14:00 GMT. Analysts are forecasting the figure to come in at 335K, which if true, would represent the second consecutive month of growth in the US Real Estate sector. Should the news come in as expected, the dollar may be able to extend yesterday’s gains against the yen and UK pound. That being said, if today’s indicator comes in below the predicted level, the greenback could reverse its recent bullish trend.
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