By ForexYard – The US dollar has been pushed bearish by concerns over the US economy following a series of recent economic data, undershot market expectations. Meanwhile, European numbers and many company results have been stronger — keeping investors buying riskier assets.
The dollar-index hit a 3-month low today, hurt by concerns that the American economy’s recovery is losing momentum, while the high-yielding Australian dollar (AUD) reached a 3-month high, lifted by a rise in Asian equities this morning.
The perceived better-risk-sentiment outside of the United States was unlikely to be maintained if the world’s biggest economy continues to underperform. If today’s release of American ISM Manufacturing PMI and Prices comes in below expectations, we should expect a continuation of this counter-dollar trading behavior, pushing the EUR/USD upwards in the direction of 1.3110.
Forex Market Analysis provided by Forex Yard.
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