The US Dollar softened against the Pound and fell against the Euro after data showed that the USA’s trade gap widened more than expected in September, rising to a four-month high.
According to the Washington based Commerce Department the trade gap rose by 8% to $41.8 billion. The gap was wider than economist forecasts for a $39 billion deficit. Exports declined for a third consecutive month whilst imports climbed. The data paints a mixed picture for the US economy as higher imports shows that consumers are more willing to buy goods and services; the decline in exports mirrors the faltering of the Eurozone economy.
The Dollar eased against its peers after the Labour Department said the number of individuals filing for initial jobless benefits last week declined by 2,000 to a seasonally adjusted 339,000. Analysts had expected U.S. jobless claims to fall by 11,000.
The currency came under pressure earlier in the session after Federal Reserve Governor Nominee Janet Yellen said that the US economy is performing well below its potential and that she would maintain stimulus measures until a solid improvement kicked in.
“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy,” Yellen said yesterday.
As a result of her comments commodity based currency’s rallied early in the session but by the afternoon currencies such as the Australian Dollar tumbled as economists judged that they had risen too fast in response to Yellen’s comments.
The Canadian Dollar tumbled close to a two-month low against the ‘Greenback’ and slumped against the Pound. The fall was its biggest drop in three weeks.
“When the Yellen speech was released, everyone was looking for a dovish approach, and that’s what came out in the end, and it was a kind of buy-the-rumor, sell-the-fact reaction,” said Darcy Browne, managing director of currencies at Canadian Imperial Bank of Commerce, from Toronto. “The market’s mind is that they want a stronger US Dollar, and they want to achieve it.”
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6236
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7432
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0479
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6035
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3454
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9542
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7092
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5992
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6686
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0481
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4038
(Correct as of 15:10 pm GMT)
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