Dollar higher despite negative growth perspective, January 17 2013

U.S. dollar
U.S. dollar

The American dollar was traded higher against most of its major competitors during today’s Asian session, due to negative economic growth reports that made investors think about less risky assets.

During the Asian trading today, currency pair EURUSD was traded at the level 1.3300, which is a big gain considering Germany’s 2013 GDP growth prognosis. The pair was supposed to meet support at 1.3247, bottom from January 11 and resistance at 1.3392, peak from Tuesday and an almost eleven-month high.

Yesterday, Germany announced that it expects 2013 economic improvement of just 0.4%, down from a previous prognosis of 1% increase. Germany is considered to be the Eurozone’s largest economy. Germany is expecting the rise to rebound to 1.6% in the next year.

At the same time, currency pair GBPUSD decreased with 0.04% to the level 1.6000 while USDJPY added 0.06% trading at 88.44. Official data from yesterday pointed by METI that Japan’s tertiary index 0.3% in December following a 0.1% decrease in November. Experts had prognosis for 0.1% rise in the last month.

Currency pair USDCHF gained 0.07% to 0.9318 while USDCAD was traded at 0.9868.

The dollar gained strength after the World Bank lowered its 2013 global growth prognosis to 2.4% from a prior outlook of 3% and Germany’s government announced that the economy is going to grow just 0.4% in this year, down from its previous prognosis for 1% increase. The Eurozone’s largest economy expect growth rebounding to 1.6% in next year and that supported the pair EURUSD.

AUDUSD was traded at the level 1.0509 after the Australian Bureau of Statistics indicated that Australian unemployment rate increased to 5.4% in December compared to 5.3% in November. Experts had prognosis of December reading of 5.4%.

Currency pair NZDUSD was traded at the level 0.8391. The U.S. Dollar Index gained 0.07% to 79.89.

Dollar against Swiss franc / USDCHF, H1
Like this post? Please share to your friends:
ForexZig - Professional forex trading