US Dollar significantly lowers after non-optimistic data from United States

DollarYenPic_E_20090917093620During Thursday trading session US dollar sharply retreated versus the euro and the Japanese yen, right after the release of disappointing economic data from United States.

USD/JPY cross fell to 102.31, as it reached almost 102.70 during late European session.

It was reported that Initial Jobless Claims rose by 32 000 to 360 000 last week, as estimates pointed an increase to 330 000.

Another indicator, that came out earlier, was the US Consumer Price Index (CPI), which dropped by 0.4% during April. The probable cause for the decrease, mostly, was the gasoline prices dip by 9.1%, as reported. Energy products diminished their prices by 4.3% due to weak global demand, slowing down of the Chinese economy, continuing recession in the single currency zone and the challenges in front of US economic recovery. Experts predicted a 0.3% fall in consumer prices, while the indicator reduced its value by 0.2% during March. Annually consumer inflation slowed down to 1.1% during April, as it was 1.5% during the preceding period.

US Commerce Department announced, that the number of Building Permits increased to adjusted 1.017 million during April, exceeding expectations of an increase to 0.941 million units.

Additionally, it became clear that US Housing Starts declined by 16.5% to 0.853 million units in April. This was the greatest drop since November 2012. Single-family house building took a dip by 2.1%, while multifamily house building declined by 37.8%. Estimates pointed a decrease by 6.4% to 0.970 million units. Housing starts indicator was revised to 1.021 million units during the previous period.

After the release of US data the euro jumped off to 1.2920 level against the US dollar, as it was traded in the 1.2883-89 zone.

A report made clear earlier, that Euro zone reached a record trade surplus of 22.9 billion euros during March, as export dropped by 6% and import decreased by 10.6% during the month. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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