The US dollar faced correction on overnight trading on Tuesday as China reported the increase of 4.9 percent in its consumer price index as compared to analysts’ expectations of 5.4 percent. The dollar index DXY which measure greenback’s movement versus its six major rival currencies declined to 78.50 in overnight trading as compared to 78.602 on Monday’s North American trading session.
The Australian dollar also advanced 0.2 percent to 1.0039 against the US dollar on the positive news of less increase in Chin’s CPI index.
On the other hand analysts are expecting a rise of 0.6 percent in US retail sales for the month of January as compared to nil growth in the prior month. The surge in retail sales is expected on the basis of increase in core spending and food and energy prices.
The Euro also rose to 1.3510 against the US dollar as compared to1.3484 on Monday despite the negative sentiments about euro zone’s sovereign debt situation. Investors were also uncertain about the future outlook of WestLB one of the Germany’s major financial institutions however analysts believe that Germany’s economy is the only factor which can provide support for the single currency. Economists are expecting strong economic data for the quarter by Germany.
The British Pound also gained against the US dollar to 1.6047 in overnight trading as compared 1.6036 on late Monday.
However the greenback advanced to 83.46 versus the Japanese Yen in Asian trading session as compared to 83.26 on Monday’s North American trading session despite the factor that Japanese central bank managed to kept the overnight call rate to very low level which is expected by most analysts.
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Daily forex trading news written by Rehan from DailyForexTrade.com
