Dollar Hits One-Month High Against the Euro on China data, Jobs Report
The dollar continued to edged higher on Monday against the euro and other major currencies on safe haven buying as China’s export expanded less than expected.
The euro was trading at $1.3109 after hitting low of $1.309, for the first time since mid February. Euro is expected to see further pressure going forward as Greece’s news is now out and investors tend to book profit on news. The euro is expected to show solid support at $1.3055.
Moreover, the dollar index made its 7-week high of 80.13 and now trading higher 0.10% at $80.07. Analysts’ see more room to move higher if the U.S. economy continues to show healthy sign as it shown recently with solid Jobs report on Friday.
On Friday, U.S. jobs reports signaled that the country added over 200K jobs for the third straight month in February, a sign the recovery was gathering pace.
The dollar was also getting support after Chinese Exports just grew 18.40% annually, missing economists’ estimates of 31.10%. This also helped Japanese Yen to rise against its major counterparts.
Also, global equities slid with U.S. futures signal with moderate losses. Usually dollar tends to move higher when equities fall as investors prefer to buy the currency on safe haven.
The dollar slid 0.30% against the yen to 82.21 yen on profit-booking after touching a 11-month high of 82.65 yen on Friday. U.S. However the dollar jumped slightly against the pound and was recently trading at $1.5636 after hitting higher of $1.57.
Going forward, currency traders would watch out for The Bank of Japan’s two-day policy meeting starting today.
This morning, China’s central bank governor said Monday the yuan was nearing fair value against foreign currencies, while adding that it was too premature to refer if the nation’s trade deficit in February was the start of an important trend.