The European single currency and the Japanese yen continues to record the strengthening of United States dollars (U.S.), driven negative sentiment of the State economic outlook Uncle Sam is still worried.
Euro yesterday rose to the highest position since May 3 and at the level of USD1, 32.Mean while against the yen, the U.S. dollar sank to its lowest level since 27 November 2009 to a level of 85.85 yen.
“If the U.S. economic data continued to disappoint, we will see further decline in the dollar,” said CMC Markets analyst Michael Hewson.
Foreign exchange market (forex) until yesterday still anticipating the release of new data related to the U.S. economy, among others, the personal consumption expenditures and revenues, and the level of manufacturing orders and pending home sales data.
Earlier, the U.S. Institute of Supply Management announced that the U.S. manufacturing index fell to 55.5 percent in July from 56.2 percent in the previous month. Official data also showed that U.S. economic growth in the second quarter slowdown was seen in the gross domestic product growth of only 2.4 percent.Hal sparked fears that some parties that the process of recovery began to lose momentum.
Adam Solomon of TorFX analysts added, the euro also gained yesterday thanks to speculation that a slowing U.S. economy will force the Federal Reserve to boost fiscal stimulus. Earlier, Fed Chairman Ben Bernanke is known to give a warning that government spending cuts to slow U.S. economic recovery.
On the other hand, the euro gained support from the good results of endurance test the European banking sector. Statistics from the strong euro zone plus good manufacturing revenue was recorded a number of large banks in Europe, HSBC and BNP Paribas, helped boost market optimism.