AceTraderForex March 27: Dollar strengthens versus euro on upbeat durable goods data

[B]Market Review[/B] - 26/03/2014 [I]19:04GMT[/I]

[B]Dollar strengthens versus euro on upbeat durable goods data[/B]

The greenback strengthened against the euro on Wednesday after upbeat U.S. durable goods data added to speculation that the Federal Reserve will continue to cut back its stimulus measures.

U.S. durable goods came in better-than-expected at 2.2% versus forecast of 1.0%.

The single currency remained under pressure in Asia and weakened to 1.3790 in early European morning. Price edged lower to 1.3782 at New York open after the release of better-than-expected U.S. durable goods. Later, euro fell further to 1.3776 in New York afternoon before trading sideways.

Versus the Japanese yen, the greenback retreated from Asian high at 102.40 to 102.26 before rising to an intra-day high at 102.48 at New York open on dollar’s strength. However, renewed selling there pressured the pair lower and price retreated to 101.87 in New York due to the decline in U.S. stock markets.

Although the British pound retreated to session low at 1.6509 at European open, renewed buying there lifted the pair and price rose to 1.6557 in early European morning. Later, cable rallied to an intra-day high at 1.6597 in late New York, helped by active cross-buying of sterling vs euro.

In other news, Japan EconMin Akira Amari said ‘BoJ still has role to play but all 3 arrows of Abenomics must be deployed to achieve its price target; aiming for surprise effect is one way BoJ can maximize its policy impact; Japan not manipulating FX as yen has only fallen back to pre-Lehman crisis levels; gov’t to scrutinize Oct, Nov 2014 data as well as Q3 GDP in deciding whether to proceed with sales tax rise to 10% in Oct 2015.’

On the data front, Italy Jan retail sales came in at 0.0% m/m n -0.9% y/y, versus the forecast of 0.1% n -1.6%. Germany Apr Gfk consumer confidence came in at 8.5, same as expectation.

[B]Data to be released on Thursday:[/B]

New Zealand trade balance, exports, import, France consumer confidence, Italy business confidence, economic sentiment, U.K. retail sales, U.S. GDP, personal consumption, core PCE, initial jobless claims, pending home sales.