US Dollar Slides Lower as Economic Data Disappoints
The US dollar is holding steady after trading bearish in the previous session over the release of a disappointing weekly jobless claims
On Friday, the US dollar is holding steady after trading bearish in the previous session over the release of a disappointing weekly jobless claims report highlighting challenges in economic recovery in the country. At the time of writing, the US dollar index DXY is trading around 92.92.
Earlier this week, the Fed expressed hope that the contraction in the US economy would be less severe than previously anticipated. However, the latest report showed that jobless claims figures remain high, coming in at 860k for the previous week and raising worries about the progress towards recovery.
The US dollar is also trading under pressure after housing starts declined by 5.1% during August – the first fall after rising for three consecutive months. In addition, the Philly Fed manufacturing index also showed a slowdown in the rate of expansion in the sector, with the reading falling from 17.2 in August to 15 in September.
A decline in US stock futures is also denting the appeal of the Greenback among traders in recent sessions. Analysts except the dollar to remain bearish as long as the correction in US stocks currently underway comes to a halt.
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