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    Foreign exchange market. American session: the U.S. dollar traded lower against the most major currencies despite the better-than-expected U.S. economic data | 02.04.2015

     

    The U.S. dollar traded lower against the most major currencies despite the better-than-expected U.S. economic data. The U.S. trade deficit narrowed to $35.44 billion in February from a deficit of $42.7 billion in January. That was the lowest level since October 2009.

     

     

    January's figure was revised down from a deficit of $41.8 billion.

     

     

    Analysts had expected a trade deficit of $41.5 billion.

     

     

    The decline of a deficit was driven by a stronger U.S. dollar and weaker global demand.

     

     

    Factory orders in the U.S. rose 0.2% in February, exceeding expectations for a flat reading, after a 0.7% drop in January. It was the largest increase since July 2014.

     

     

    January's figure was revised down from a 0.2% fall.

     

     

    The increase was driven by higher orders for non-durable goods.

     

     

    The number of initial jobless claims in the week ending March 28 in the U.S. fell by 20,000 to 260,000 from 288,000 in the previous week, beating expectations for a decline by 3,000. The previous week's figures was revised down from 282,000.

     

     

    The euro rose against the U.S. dollar in the absence of any major economic reports from the Eurozone. Concerns over Greece's debt problems continue to weigh on the euro.

     

     

    The European Central Bank (ECB) released its minutes of March meeting. According to the minutes, the Governing Council reiterated to keep its monetary policy "for as long as needed".

     

     

    The British pound traded higher against the U.S. dollar. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. fell to 57.8 in March from 60.1 in February, missing expectations for a rise to 60.4.

     

     

    The decline was driven by slower rise of output and new orders.

     

     

    The Canadian dollar traded higher against the U.S. dollar after the better-than-expected Canadian trade data. Canada's trade deficit narrowed to C$0.98 billion in February from a deficit of C$1.5 billion in January. January's figure was revised up from a deficit of C$2.5 billion. Analysts had expected a trade deficit of C$1.8 billion.

     

     

    The lower deficit was driven by stabilising oil prices.

     

     

    The New Zealand dollar traded higher against the U.S. dollar. In the overnight trading session, the kiwi rose against the greenback in the absence of any economic reports from New Zealand.

     

     

    The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie traded higher against the greenback after the weaker-than-expected trade data from Australia. Australia's trade deficit widened to A$1.26 billion in February from A$1.03 billion in January. January's figure was revised down from a deficit of A$0.98 billion. Analysts had expected the trade deficit to rise to A$1.25 billion.

     

     

    The increase of the deficit was driven by lower iron ore exports.

     

     

    Exports rose 1.0% in February, while imports climbed 2.0%.

     

     

    The Japanese yen traded lower against the U.S. dollar. In the overnight trading session, the yen traded mixed against the greenback. Japan's monetary base increased 35.2% in March, missing expectations for 35.3% gain, after a 36.7% rise in February.

     

     

    The Bank of Japan (BoJ) released its inflation expectations survey on Thursday. Japanese companies expect consumer price inflation to increase 1.4% in one year from now, unchanged from the December survey, the central bank said.


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