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Forex - Dollar mostly higher after data, Fed comments

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Investing.com - The U.S. dollar traded higher against most of its major rivals during Wednesday's Asian session after some comments from a Federal Reserve member Tuesday that were supportive to the greenback.

In Asian trading Wednesday, EUR/USD nudged 0.04% to 1.3301 after official data revealed that German factory orders rose by 3.8% in June, surpassing market consensus forecasts calling for a 1.0% gain.

Orders within the euro zone rose 10% last month, while sales outside of the single currency block rose by just 0.9%. Germany is the euro zone's largest economy. In brighter news, the International Monetary Fund boosted its German growth forecast to 1.4% in 2014 from a previous 1.3% forecasts and maintained its 2013 growth forecast at 0.3% in its annual report on the country.

GBP/USD fell 0.08% to 1.5336 after the Office for National Statistics said that U.K. manufacturing production jumped by 1.9% in June, blowing past expectations for a 0.9% increase.

The ONS added industrial production rose by 1.1% in June, beating expectations for a 0.6% increase after posting a flat reading in May.

The numbers came a day after London-based Markit Economics reported that the U.K. services purchasing managers' index rose to 60.2 from 56.9 in June, well above economists' expectations for a reading of 57.2.

USD/JPY 0.37% to 97.79 and USD/CHF dropped 0.06% to 0.9255 even after Federal Reserve member Richard Fisher, president of the Dallas Fed, said investors have become too dependent on the Fed backstopping riskier assets.

In comments made in Oregon, Fisher said, "Financial markets may have become too accustomed to what some have depicted as a Fed 'put,'" or the idea that the central bank will loosen credit after a market decline."

USD/CAD inched up 0.04% to 1.0381 although oil prices rose slightly. AUD/USD fell 0.19% to 0.8972.

NZD/USD nudged down 0.06% to 0.7896 after Statistics New Zealand said that New Zealand's unemployment rate rose to 6.4% in the second quarter from 6.2% in the first quarter. Analysts expected a second-quarter reading of 6.3%. New Zealand's employment change rose 0.4% in the second quarter following a first-quarter increase of 1.7%. Analysts expected the second-quarter increase of 0.4%.

The U.S. Dollar Index was flat at 81.67.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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