Forex ­Dollar defensive position and the euro continues to rise, with hopes of resolving the Greek crisis

Forex­ Dollar defensive position and the euro continues to rise, with hopes of resolving the Greek crisis

The dollar’s continued decline broadly against other major currencies Wednesday after weak manufacturing data diminished expectations by raising interest rates, while growth in the euro area increased more than expected amid the hopes of resolving the debt deal in Greece. EUR/USD rose to 1.1145, rolling just below its highest level in a week and a half of 1.1193 record set on Tuesday. And the pair closed at the high rate of 2.08%. 

The dollar fell across the Board after the raised data released on Tuesday showed that u.s. factory orders dropped unexpectedly in April, raising concerns about the Outlook for growth in the second quarter. 

The Commerce Department reported that factory orders declined by 0.4% in April despite expectations for a 0.2% increase. 

The weak data also indicated the none ­expected growth has struggled to rise in the current quarter after declining in the first quarter. Continued demand for the single currency, with the hopes that Greece will soon reach an agreement with international lenders on monetary reforms package. 

The Greece to pay 305 million euros to the International Monetary Fund on Friday 5 June. But it warned last month that Greece will not be able to pay if no agreement was reached on the monetary reform deal by then.

 The euro received an additional boost after data showed Tuesday that consumer prices in the euro zone rose for the first time in six months in May. Also the consumer price index in the euro area by 0.3% compared with the previous year in may, after reading the unchanged in April. Economists were expecting an increase of 0.2%. Core inflation, which excludes prices of energy, food, alcohol, too. 

The annual core inflation rate rose by 0.9% from a record low of 0.6% in April. The euro rose to the highest rate in five months against the yen rise in five months against the yen, with the Euro/yen to 138.22, not far from the highest price for Tuesday at 138.86. Also stabilized the USD/JPY at 124.09, an apostate from the highest levels of the day on Tuesday at the 12 and a half years at 125.06. Trading dollar index, which measures the dollar against a basket of six major currencies, the currencies to 96.11, away from the lows recorded by Yen overnight from 95.69.  

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Forex ­Dollar defensive position and the euro continues to rise, with hopes of resolving the Greek crisis