Despite the strong US economic data, the US Dollar managed to end its winning streak after witnessing its worst decline in two weeks.
The US Dollar Index, which measures the strength of the US Dollar against a basket of major currencies, ended at its lowest close in three days at 93.50.
The US New Home Sales came out above their expectations hitting their 10-years’ high at 667K for the month of September following the release of the Durable Goods Orders’ data that also surpassed their expectations.
On the other hand, the Great British Pound surged to its highest level in an over a month to settle at 1.3261 above its 14-day’s and 50-day’s moving averages. These gains were supported by the United Kingdom’s positive Gross Domestic Product readings on both of their quarterly and yearly basis.
Moreover, the European currency also witnessed some significant gains to settler higher at 1.1812 boosted by the weaker US Dollar and ahead of the European Central Bank’s interest rate decision later today. Market expectations are highly in favor of the European Central Bank leaving its interest rate unchanged at zero percent.
Furthermore, the Japanese Yen strengthened against the US Dollar to end today’s trading session at 113.73 but to remain near its weakest levels in several months.
Meanwhile, both the Australian and New Zealand Dollars expanded their losses to reach fresh lows against their US counterpart, with the Australian Dollar settling at 0.7703 and the New Zealand Dollar ending at 0.6886.
The Australian Dollar fell sharply after the disappointing inflation data that came below their expectations on both their yearly and monthly basis. However, the weaker US Dollar kept these losses in check.
Following Bank of Canada’s interest rate decision yesterday keeping it unchanged at one percent, the Canadian Dollar weakened further against its US counterpart to reach its weakest level in more than three months at 1.2795.
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