16 July 2007, 17:57  Dollar largely unchanged after strong manufacturing survey

The dollar was broadly unchanged after a manufacturing survey of the New York area came in much stronger than expected. The New York Fed's Empire manufacturing index rose to 26.5 in July after last month's surprising jump to 25.8, confounding expectations for a pullback to the still relatively solid 18.0. The new orders index was up 9 points at 26.5, its highest level in more than a year. The index has relatively high month-to-month volatility. The dollar gained a brief fillip from the data, before settling back to previous levels. The currency has come under increased pressure in recent days amid concerns over the US economic outlook, hitting multi-year lows against the pound and an all-time low against the euro. Ashraf Laidi at CMC Markets said the Empire survey is having a stabilising influence on the dollar but "the risks of further negative US data remain amidst the barrage of key reports later this week." "Dollar weakness is becoming increasingly pervasive as the yen further drags the US currency despite a return to risk appetite in global equities, which underlines the broadening weakness in the greenback," he added. At 1345 BST the dollar was trading at 1.3780 to the euro, from 1.3784 just before, while the pound was at 2.0372 usd, from 2.0373 usd before.

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