Wednesday, June 24, 2015

Safe haven currency US dollar buy strong against EUR

Global safe haven currency US dollar remained broadly higher against other major currencies on Tuesday, after the release of mixed U.S. economic reports, as ongoing uncertainty over the outcome of Greek debt talks continued to weigh on market sentiment. USD stronger against EUROPEAN UNION single currency

From The U.S. Commerce Department reported on Tuesday that new home sales jumped by 2.2% to 546,000 units last month, the highest level since February 2008, compared to expectations for a gain of 1.5% to 525,000. It's good sign for better economic growth and personal spending in USA

Meanwhile, A separate report showed that total U.S. durable goods orders, which include transportation items, declined by 1.8% last month, worse than expectations for a drop of 0.6%. It's significantly dropped, Core durable goods orders, excluding volatile transportation items, inched up by 0.5% in May, missing forecasts for an increase of 0.6%.

Safe haven currency USD dollar remained broadly supported as euro zone finance ministers failed to reach agreement over Greece's bailout at an emergency meeting on Monday. New meeting and talks were scheduled on Thursday, leaving just 48 hours for a detailed agreement to be finalized.

As reported by Investing, The new reform proposals from the Greek government prompted sharp criticism at home on Tuesday, with government and opposition MPs criticizing the plan.

How about safe haven currency The US dollar index which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 1.02% at 95.48, the highest level since June 12.

Safe haven currency best pairs EUR/USD tumbled 1.31% to two-week lows of 1.1192 as the single currency shrugged off data on Tuesday showing that private sector activity in the euro area expanded at the fastest pace in four years this month, cementing the view that the economic recovery is gaining traction. And it was better significant growth instead of Greek debt talks on process

Meanwhile from other countries, The bloc's manufacturing PMI rose to 52.5 this month from 52.2 in May, while the services PMI improved to 54.4 this month from 53.8.

European Union largest economic trade country, France's manufacturing sector expanded for the first time since April 2014 this month, as a broad based pick up in private business activity gained momentum on optimistic businesses growth, from Berlin we reported German private sector activity also expanded at a faster-than-expected pace.

From Britain currency The pound sterling was also lower, with GBP/USD revised down 0.52% to 1.5742.

Safe haven currency US dollar pushed higher against the yen and the Swiss franc, with USD/JPY  up 0.35% to 123.81 and with USD/CHF rallying 1.35% to 0.9338.

Source : Investing

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