Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar was firmer during the Asian trade session on Thursday. Forex traders are fleeing into safety after grim economic data out of the United States crossed the wires overnight on Wednesday.
U.S. Retail sales cratered and the New York State Empire manufacturing index came in at a record low as the Covid-19 pandemic wreaks havoc on the world’s largest economy.
The U.S. dollar index, which measures the greenback in a basket against six other Forex units, was last trading at 99.632. This is keeping it 0.8 percent gain seen overnight stable.
Against the dollar, the euro currency was moving lower form a two week high at 1.0980. The EUR/USD currency exchange rate last traded at 1.0911. The USD/JPY Forex market was trading at 107.42 yen.
Against the greenback the British pound shed nearly one percent on Wednesday and was last trading at 1.2523. The AUD/USD currency exchange rate fell by 1.9 percent on Wednesday for its largest daily loss since March 18. This currency exchange rate last traded at 1.2523.
Forex Traders Digest Dismal U.S. Economic Data and flee into the Dollar
Forex traders, as well as other financial market participants are worried that the economic damage being done by the Covid-19 pandemic to the U.S. economy will be deep and long lasting.
For the month of March, U.S. retail sales contracted by 8.7 percent. This only brings focus on the amount of economic damage being done to the world’s largest economy.
U.S. Manufacturing Output Contracts at an alarming Pace
The Federal Reserve Board released data that showed that manufacturing output fell 6.3 percent in Match. This is the largest contraction seen since February 1946.
The New York Federal Reserve released their Empire State manufacturing index on Wednesday as well. Manufacturing activity in the New York, New Jersey and Connecticut region fell to an all-time low level.
This gloomy economic data is impacting consumer and business sentiment in the United States as traders are now looking for when the bottom will be reached and how deep the hole will be to climb back out of.
