FX & CFD trading involves significant risk
The dollar fell for a 10th straight day, the longest slump in 17 years, after slower manufacturing growth reinforced speculation the Federal Reserve will maintain record-low rates.
Dollar index advanced earlier after the U.S. said al-Qaeda leader Osama bin Laden had been killed.
The euro gained to a 16-month high before the European Central Bank, which raised interest rates last month, meets this week. The Fed kept its rates on hold last week.
The Institute for Supply Management’s factory index was at 60.4 for April, slipping from 61.2 the previous month. Manufacturing expanded for a 21st straight month.
A widening interest-rate gap between America and the rest of the world may mean no rebound this year for the dollar.
The Fed is expected to hold its benchmark interest rate at zero to 0.25% benchmark interest rate, where it’s been since December 2008, until the first quarter of 2012, according to the weighted average forecast.
While a weaker dollar may signal waning confidence in the U.S., it also may help President Barack Obama reach his goal of doubling exports by 2015 and reducing unemployment.
The yen snapped two days of gains versus the euro after Obama said bin Laden was killed after a firefight at a house in Pakistan. Bin Laden was the architect of a radical Islamist movement that killed almost 3,000 people in the U.S. on Sept. 11, 2001, and recast global security and politics.
EUR/USD: the pair shown high in the field of $1.4820 then decreased below a mark $1.4800.
GBP/USD: the pair decreased in around $1.6580.
USD/JPY: the pair receded in around Y80.80.
European data for Tuesday includes the latest German car registrations data.
In the UK, data starts at 0830GMT with PMI Manufacturing data for April. UK data also includes the latest CBI Distributive Trades data at 1000GMT.
US data includes domestic-made light vehicle sales, which are forecast to rise to a 9.9 million annual rate in April after falling slightly in March. At 1400GMT US factory new orders are expected to rise 2.0% in March.
|remaining time till the new event being published|
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.