USD declined against a basket of currencies, in particular the euro, amid U.S negative data. However, the greenback recovered from its biggest weekly fall in more than 7 year’s against JPY. The European single currency surged against its U.S counterpart, backed by stronger German manufacturing data.
USD Index fell by 0.40% and touched 90.60, the lowest level since January 2015.
Concerns over Japanese policy makers' inability to hold off the yen's rise pushed the USD to an 18 month low of 106.14. In terms of the world's no. 3 economy, the Japanese Finance Minister Taro was quoted in the local media as saying he viewed the yen's strength as "extremely worrying" stoking speculation the BOJ could intervene to stem the currency's rise.
Euro surged up to $1.15, thanks to stronger German manufacturing data and could touch levels of $1.17.
GBP/USD rose to $1.47 positively affected by soft U.S data. Traders will turn their attention to Markit UK PMI Manufacturing as it could negatively affect the GBP.
Gold touched the key level of $1,300 as the activity in China's manufacturing sector expanded. Thanks to the soft dollar and the slowing of U.S industrial activity, it failed to settle above $1,300 and traded around $1,290. The precious metal could retest levels of $1,300 during the course of the week.
Oil prices dropped by 2% on Monday, negatively affected by profit taking on last month's outsized rally and OPEC oversupply. WTI declined to $45 and could decline further to $44.
The most important economic events:
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