By: Barbara Zigah
The U.S. Dollar recovered in Asian trading, bouncing back from a 2½ month trough against the Japanese Yen following the data release yesterday which showed that U.S. manufacturing grew at its strongest rate in nearly 10 months. According to the ISM, the reading for April rose to 54.8 from March’s 53.4 and was well above analysts’ expectations of a decline to 53.0. As reported at 12:35 p.m. (JST) in Tokyo, the USD/JPY was trading above 80.00 Yen, recovering from the low 79.640 Yen struck on Tuesday as short sellers were caught flatfooted and were compelled to buy back the greenback. Analysts doubt that the U.S. Dollar will continue to rise, as Friday’s payroll data will be the focus with many investors worried of another surprising fall.
The Dollar also moved higher against the Euro, trading at $1.3211 and slipping off a 1-month high of $1.3284 struck in the overnight hours. Speculation that the European Central Bank could at least hint at further easing is ensuring that trading stays subdued while further out the upcoming French presidential election is also likely to weigh on the common currency with the main concern being that the incumbent, Nicolas Sarkozy, is ousted by Socialist Francois Hollande, which would be seen as a blow to the fragile Euro.
U.S. Dollar Recovers on Strong Data
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.