By TraderVox.com
Tradervox (Dublin) – Lower than expected data from China and Europe led to the increase of the yen and dollar as investors searched for safe haven assets. Commodity currencies dropped led by the south pacific dollars; the euro, the pound and the Canadian dollar all declined during the European session and the New York session as well after the release of the European and Chinese Industry data.
The yen was the biggest gainer rising by more than 1 percent against the major currencies. This bullish trend was supported by reports from Japan indicating that the country registered a trade surplus for the month of February. Yen and Dollar demand were boosted by weaker industry data from Europe and China that enhanced concerns over the state of the global economy with analysts saying the global economy is slowing down. This sparked the demand for safe haven currencies.
Omer Esiner, the Chief Market Analyst at Commonwealth Foreign Exchange Inc. in Washington while talking about the concerns about the global economy said that the disappointing data from China and the Europe’s weaker than expected data has raised concerns about the worldwide economy that has led to a “flight to safety” within the market. He also indicated that the dollar is supported by the weakening jobless claims in the US.
The Canadian dollar fell to parity due to the Europe and China report as Australian dollar fell to a two month low. The euro also dropped by 0.5 percent as the British pound slid by 0.36 percent against the US dollar.
The euro was selling at $1.3153 at the start of trading in the European session after dropping 0.5 percent. The 17-nation currency dropped by 1.4 percent against the yen to settle at 108.65 while the Canadian dollar depreciated by 1.9 percent against the Japanese currency to settle at 82.45 yen. The US dollar rose by 0.8 percent against the Canadian dollar to settle at 99.98 Canadian cents per USD.
Against the south pacific currencies, the USD gained by 0.8 percent to sell at $1.0376 as the Yen increased 1.9 percent to sell at 85.57 yen against the Aussie. The yen and the dollar increased by 2 and 0.9 percent to sell at 66.65 yen and 80.82 US cents respectively against the New Zealand dollar.
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