US Dollar Drops on Weaker Than Expected GDP and Jobs Data, Yen Data Mostly as Expected - 31.5.2013
Yesterday the US dollar lost ground, amid US economic releases missed expectations reducing chances for FED withdrawal from QA, risk sentiment pared recent damage. The preliminary GDP for the first quarter was at 2.4%, lower than an earlier estimate at 2.5%, also US Jobless Claims increased to 354K the previous week compared to 344K two weeks ago and were higher than expected. The US dollar index weakened from upside barrier at 83.68 to lower barrier at 82.92 and has established a negative structure in the daily price chart.
The common currency versus the US dollar advanced above the psycho resistance at 1.30 due to fresh long positions placements amid greenback’s weakness as well as underpinned by European equities green color. The pair eventually found resistance at 1.3060 yesterday evening and retraced slightly early on Friday 1.3029, recent German retails sales were weaker than forecaste setting some pressure on the EURUSD. The sterling has been in an upside development due to its major counterparty devaluation, the US dollar, in recent trading, the pair rose as high as 1.5238 and then moderately corrected to 1.5211.
Looking at the Far East trading the Japanese Yen per US dollar is trading in a recently created range pattern mainly, between 101.30/100.59. On the data front, Japanese consumer prices indicators released with the National Core CPI for April at -0.4% as expected, improving from -0.5% the previous month and the Tokyo Core CPI turning positive again after August 2011 at 0.1%, higher than expected. The Unemployment Rate in Japan remained as expected in April and the same like previous month, at 4.1%. NIKKEI225 rebounded from recent yesterday session’s lows and closed in positive territory gaining by 1.37%, volatility has increased due to aggressive measures taken by BOJ and Japanese Government to fight back deflation.