Dollar Falls, Heads to Weekly Losses

The US dollar fell today following disappointing macroeconomic reports from the United States. The losses were very limited but the greenback was still set to be one of the weakest currencies on the Forex market over the past week.

The final revision of US gross domestic product confirmed that the US economic growth slowed in the fourth quarter of 2014. The Survey of Consumers performed by the University of Michigan showed that the consumer sentiment worsened in March compared to the preceding month. Yet the report was not totally bad as Richard Curtin, Surveys of Consumers chief economist, clarified:

Importantly, most of the recent variation was among lower income households, whose budgets are more sensitive to higher utility costs and disruptions in work hours. Households with incomes in the middle and top thirds of the distribution, in contrast, recorded gains in confidence in the March survey.

The dollar buckled under the weight of the negative data and retreated during the Friday’s trading session. Yesterday, it looked like the US currency may gain ground, but such view proved to be incorrect today. Still, dollar bulls do not necessarily despair as the greenback is still supported by the healthy state of the US economy, at least relatively to most other major economies.

EUR/USD was up from 1.0883 to 1.0900 as of 19:34 GMT today after falling to the session low of 1.0800. GBP/USD rose from 1.4845 to 1.4880. USD/JPY inched down from 119.16 to 119.10.

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