Dollar falls on the negative market sentiment

20.04.2016

On Wednesday, the dollar fell against other major currencies, as market sentiment weakened amid declining oil prices, while investors wait for the US publication of data on housing sales in the secondary market later today.

USD/JPY pair remained at 109.16.

Oil prices show a decrease, as a three-day strike of oil workers in Kuwait, which has reduced production in the country by nearly twice, ended late on Tuesday.

At the end of the strike, there appeared once again concerns about the inability of the world's major oil producers to reach an agreement on the freezing of production.

Meanwhile, sentiment on the dollar remained fragile after data on Tuesday showed that the volume of granted building permits fell 7.7% last month to 1.086 million units.

EUR/USD rose 0.21% to 1.1383.

The dollar remained stable against the pound: GBP/USD pair was traded at 1.4395, and fell slightly against the Swiss franc: USD/CHF fell 0.09% to 0.9609.

On Wednesday, the UK Office for National Statistics reported that the country's unemployment rate for the three months to February was 5.1%, coinciding with market expectations.

However, the number of applications for unemployment benefits unexpectedly rose in February to a seasonally adjusted 6700, compared with expectations of a decline by 11300. The growth was recorded for the first time since August 2015.

The average salary, taking into account premiums, rose by a seasonally adjusted 1.8% in the three months to February, lower than expected growth by 2.3%, after increasing 2.1% in the three months to January. Excluding bonuses, the average wage rate rose 2.2%, which is in line with expectations.

The Australian dollar rose – AUD/USD pair rose 0.12% to 0.7821, while the NZD/USD pair fell 0.47% to 0.7011.

USD/CAD was traded at 1.2667, near a nine-month low at 1.2631 of the previous session.

USD index, which shows the relationship of the US dollar against a basket of major currencies, was down 0.16% to 93.93.

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