Dollar shruggs off downbeat Empire State data, remains higher vs peers

Dollar shruggs off downbeat Empire State data, remains higher vs peers

15 April 2015, 15:26

On Wednesday the dollar remained broadly higher against its peers, even after data indicated that manufacturing conditions in the New York area contracted unexpectedly in April, as markets awaited a report on U.S. industrial production later in the day.

In a report, the Federal Reserve Bank of New York said that its general business conditions index decreased to -1.2 this month from a reading of 6.9 in March. Analysts had expected the index to inch up to 7.0 in April.

EUR/USD dropped 0.68% to 1.0584 after the European Central Bank said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations. The central bank also held its marginal lending at 0.30% and left its deposit facility rate unchanged at minus 0.20%.

The British currency was also lower, with GBP/USD slipping 0.13% to 1.4763.

The greenback rose against the yen with USD/JPY up 0.18% to 119.61 and climbed versus the Swiss franc with USD/CHF rising 0.33% to 0.9757.

The commodity-exposed Australian, New Zealand and Canadian dollars were broadly weaker, with AUD/USD declining 0.55% to 0.7585 and NZD/USD shedding 0.26% to 0.7502.

Earlier showed that while China’s economy grew 7.0% in the first quarter, matching forecasts, it was still the slowest rate of growth in six years, putting export-related currencies under pressure.

Also Wednesday, the Westpac Banking Corporation said Australian consumer sentiment fell 3.2% this month, after a 1.2% decline in March.

USD/CAD meanwhile climbed 0.51% to trade at 1.2550 after data showed that Canadian manufacturing sales dropped 1.7% in February, compared to expectations for a 0.2% fall. January's figure was revised to a 3.0% decline from a previously estimated 1.7% slide.

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