Mar. 14: American Session
Tatiana Norkina, analyst at FBS
Surprisingly bad data on producer prices in the U.S. have weakened the U.S. dollar index. The subsequent statistics from the University of Michigan, showing the decrease of the Consumer Sentiment Index to 79.9 points (against the forecasted 82.0), have weakened the national currency even further. Stock indexes are as well near zero, but with a slant to the red zone: S&P500 has lost 0.09%, DJIA - 0.11%.
Against this background, the EUR/USD pair has jumped to 1.3930, while USD/CHF has fallen to the yesterday's minimum of 0.8700. The rate of USD/JPY is lowering as well. The pair is trading in the 101.20-101.30 area. These are last week's minimums.
The GBP/USD pair is attempting to recover slightly above 1.6600 but the negative data on UK's trade balance is bringing all the bulls' efforts to naught. According to the Office for National Statistics report, the deficit has risen to 9.79 billion pounds, against the 8.60 billion expected by analysts.