Investing.com – The Dollar folds of the summits on Wednesday in the first trading in Europe on Thursday, but it still makes a good figure in the face of the new, suggesting that the american economy remains solid.
The Euro fell to its lowest level in nearly two years against the Dollar on Wednesday evening, 1,1141, after the surveys were disappointing in Germany and France earlier in the day. It has barely recovered since. At 10: 00, it was 1,1160 USD. The british Pound continues to oscillate around 1,2911 USD.
The Dollar Index, which measures the greenback against a basket of six major currencies, reached its highest level since may of 2017 after the Bank of Japan has followed its counterpart in Canada, lowering the economic outlook.
The BoJ has indicated that it will refrain from increasing interest rates for at least a year, projecting briefly the Dollar to a new all-time high of 2019, 112,38 yen, although he declined to 111,78, failing once again to break in a sustained manner the level of 112.
The Dollar also reached a peak of three months 1,3509 against the canadian Dollar on Wednesday, while the Bank of Canada lowered its growth forecast for this year to 1.2% from 1.7%, and has dropped the rhetoric about the need for possible increases in future interest rates in its policy statement
At the same time, the stream of bad economic news from other parts of the world continues. The south Korean Won fell to its lowest level in more than two years against the Dollar after the data have shown that the economy contracted 0.3% in the first quarter, while the indian Rupee fell to a little over 70 against the Dollar by the fear that the strong rise in Oil prices this week hit its current account. India is one of the biggest importers of oil in the world.
The recovery of the Dollar could be tempered by the disappointments of the season of corporate results, although the results obtained up to now exceed overall expectations. This leaves the report on the GDP of US Friday as the next big catalyst is likely that the greenback.