The US dollar remained bullish versus Euro and Japanese Yen on the latest report showing increased manufacturing output in the state of Philadelphia.
Traders and investors are optimistic about the US economy as the Federal Reserve’s manufacturing index for Philadelphia showed a sudden increase for the current month. Further the decrease in Jobless claims in United States is making investors to shift their focus back to US dollar as the safe haven.
Global Head G10 FX, Alan Ruskin from Deutsche Bank commented, “Data like this portends well for global growth and the positive growth data is tending to help the U.S. dollar even against the commodity currencies.”
The dollar index DXY which measures the greenback’s performance versus its major counterpart currencies surged to 80.237 as compared to 80.19 on Wednesday.
The Euro declined to 1.3206 versus the greenback as compared to 1.3229 as on late Wednesday’s trading session. The Euro however remained strong in the overnight trading and gained especially versus the Swiss franc as European leaders are about to meet in Brussels.
Global head of currency strategy Marc Chandler at Brown Brothers commented, “There may be agreement on new funding for the ECB, this year will finish without a clear and convincing strategy to address the debt crisis, which will be a major force into next year.”
The Euro surged 0.6 percent versus the Swiss franc as the Swiss National Bank announced that it could intervene to tackle deflation situation in the country.
The Pound Sterling however advanced 0.3 percent to 1.5602 versus the US dollar on the latest national data showing increase of 0.3 percent in retail sales of the month of November in UK.
The US dollar traded at 84.28 versus the Japanese Yen as compared to 84.32 on late Wednesday North American trading session.
Daily forex trading news written by Rehan from DailyForexTrade.com
