FX & CFD trading involves significant risk
The dollar fell to its lowest level in seven weeks against the euro after data showed that the number of unemployment benefits rose last week, increasing the likelihood of another round of Fed quantitative easing.
According to a report published by the Ministry of Labor, the number of calls has increased to 372,000 people, compared with a revised figure of last week, on a level with 368,000.
The dollar continued to decline even after a report showed that purchases of new homes in the U.S. rose by 3.6% to 372,000 units in annual terms.
Earlier U.S. dollar fell against most major traded currencies on expectations that China will also ease monetary policy to stimulate economic growth and increase the demand for higher-yielding assets.
The pound fell after the published data showed that the number of approved applications for mortgage loans as BBA
unexpectedly rose in July.
The Australian dollar fell against 13 of its 16 major counterparts after the published data showed that China's manufacturing sector in August showed the fastest rates of decline over the last nine months, increasing the concern that the demand for commodity exports will decline.
The New Zealand dollar strengthened against all but one of the major currencies due to the appreciation of Asian stocks. Rates also rose to two-week high after the head of the Federal Reserve Bank of Chicago Charles Evans said that the promotion of monetary policy is to support the growth of the world economy.
The dollar index, which tracks the greenback against six major currencies, fell today by 0.3% to 81.284, which is a minimum of 20 June.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.