27 February 2008, 17:16  Dollar edges down after a weak US durable goods data

The dollar edged down after a weak set of US durable goods data, though the falls proved short-lived as the market focused on the upcoming testimony by Federal Reserve Chairman Ben Bernanke. Official figures showed US durable goods orders fell by 5.3 pct in January, far worse than the 3.5 pct fall analysts had expected. After the data, the euro rose to around 1.5060 usd from around 1.5045 previously, but soon retreated to around its previous levels, with investors looking ahead to Bernanke's testimony before the House Financial Services Committee later this afternoon. The dollar has already suffered steep falls overnight, with the euro earlier hitting an all-time high of 1.5087 usd. "Given that this was a month in which the Fed delivered 125 basis points of (monetary) easing it's a little difficult getting excited about durables data for January," said Divyang Shah at Commonwealth Bank. "Focus remains on Bernanke, and Kohn overnight has basically delivered the script which is that the focus remains on growth risks and not inflation risks," he said.

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