US dollar dropped from session highs

22.03.2016

On Tuesday, the dollar has stopped its growth against the major currencies, but is still supported as investors remain cautious after a series of terrorist attacks in Brussels, claiming the lives of 34 people and leaving more than 100 wounded.

USD/JPY fell 0.30% to 111.60.

Demand for the yen as a safe haven currency has risen following the series of explosions in Brussels which resulted in at least 34 people dead. The attacks took place at the airport, and a quarter of an hour later, at the metro station in the city center.

EUR/USD fell 0.10% to 1.1231.

The euro regained some ground after the Centre for Economic Research ZEW said its index of economic sentiment in Germany rose to 4.3 this month from 1.0 in February. Analysts had expected the index to rise to 5.0.

However, the Eurozone economic sentiment fell in March to a 15-month low of 10.6 from 13.6 the previous month, confounding forecasts of a decline to 8.2.

Meanwhile, the German research institute Ifo said that the index of business environment conditions rose to 106.7 this month from February's 105.7, above the forecasted 106.0.

Meanwhile, market research group Markit said that PMI composite index (for the production and service sectors) rose from February's 53.0 to 53.7, higher than expected rise to 53.0.

Earlier, Markit reported that the German manufacturing PMI fell to 50.4 in March from 50.5 in the previous month, while the PMI in the service sector rose to 55.5 this month from February's 55.3.

In France, the March manufacturing PMI fell to 49.6 from 50.2 in the previous month, while the PMI in the service sector rose to 51.2 from 49.2.

The dollar edged higher against the pound, GBP/USD pair falling 0.72% to 1.4265, but fell against the Swiss franc, USD/CHF has weakened by 0.09% to 0.9690.

Earlier, the UK Office for National Statistics reported that the consumer price index increased by 0.3%, lower than the projected increase of 0.4%.

Australian dollar shows growth, AUD/USD pair rose 0.26% to 0.7599, while NZD/USD fell 0.25% to 0.6743.

Earlier on Tuesday, the head of the Reserve Bank of Australia Governor Glenn Stevens said in his speech that the Australian economy is "fairly well settled" for a fall in prices of raw materials and has more fiscal capacity to respond to the global economic downturn than most other countries.

USD/CAD was traded at 1.3099.

USD index, which shows the dollar against a basket of major currencies, rose 0.10% to 95.50 after a jump to 95.73 earlier in the session.

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