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Currency Analyst since 2010

Euro is supported by German data

US dollar weakened versus its counterparts on Tuesday. On Monday US President Barack Obama denied a report that quoted him as saying the strong dollar was “a problem”. Still, the speculation has given many traders a reason to close USD longs.

EUR/USD rose to 1.1315. The single currency went up as German industrial production increased by 0.9% in May (forecast: +0.6%) and Bund yields rose to 0.89%. Uncertainty about Greece continues to limit the euro on the upside. Athens didn’t make any new proposal to its creditors.

USD/JPY eased down to 124.30. Japanese Economics Minister Akira Amari said that it was up to financial markets to decide whether currencies were moving in line with economic fundamentals.

AUD/USD failed to hold above 0.7700 despite the fact that Australian business confidence rebounded to a 9-month high in May and home loans gained in April more than expected. Inflation in China, Australia’s main trade partner, came out lower than expected (1.2% vs. 1.5% in the previous period).

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