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Greenback hot from all sides - FXStreet

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar sold-off this Wednesday, as tepid US data joined forces with technical breakouts in major pairs.

    Key Quotes:

    "The greenback was already under pressure before Wall Street's opening bell, with the EUR and the JPY leading higher, amid poor stocks' performance fueling risk aversion. Mostly, investors were dumping the dollar on increasing worries about the economic slowdown seen late 2015 extending into early 2016.

    The release of the US services PMI figures fueled the decline, as according to Markit economics, the US services activity growth eased to its weakest for 27 months in January, by printing 53.2. The official figure, the ISM Non-manufacturing PMI for the same month, fell to 53.5 from December's 55.3. The ADP survey showed that the private sector added 205K new jobs in January, beating expectations of 195K, growing at the slowest pace since October.

    Things are not better in Europe, with weak services PMIs readings and poor EU Retail Sales in December, up just 0.3% in the month. Seems speculators believe they may have rushed to price in the 4 rate hikes promised by the FED, and are quickly unwinding positions."
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