The US dollar remained under pressure on Monday’s North American trading session due to unrest in Egypt whereas the Euro strengthened on the latest consumer price data which is expected to result in anti inflationary measures by European Central Bank.
The dollar index DXY which measures the greenback’s performance versus its six major rival currencies declined to 77.77 as compared to 78.171on Friday’s late trading session.
The Euro surged to 1.3689 versus the US dollar as compared to 1.3608 on Friday. The British Pound also advanced to 1.6020 against the greenback as compared to 1.3608 on Friday.
The Euro remained strong on the latest report by European Union according to which consumer price inflation in United Kingdom increased to 2.4 percent in January as compared to 2.2 percent in December.
Senior market analyst Andrew Wilkinson from Interactive Brokers commented, “That pace is the highest since October 2008 and served to unleash further fears that the ECB won’t be able to sit still when they meet on Thursday for fear of a nasty incipient trend in inflation.”
The US dollar however performed in Asian trading session due to its perception of a safe haven in case of crisis but the greenback later declined in North American trading session as the US consumer spending increased more than the forecasts for the last month.
Fresh buying in Japanese Yen was seen in Asian trading session as the pair USD/YEN declined to 82.07 from 82.16 on Friday.
The Egyptian crisis has resulted in heavy depreciation of Egyptian Pound as the US dollar advanced 0.4 percent to 5.8429 Egyptian pounds. The greenback has reached its highest since 2005 versus the Egyptian currency.
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Daily forex trading news written by Rehan from DailyForexTrade.com
