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Manufacturing Data Causes USD to Tumble
Submitted by Forexyard on Fri, 18/05/2012 - 14:16
The US dollar tumbled vs. the Japanese yen during the afternoon session yesterday, following a significantly worse than expected Philly Fed Manufacturing Index. The manufacturing index came in at -5.8, well below the forecasted level of 10.3.
Following the news, the USD/JPY fell close to 50 pips before finding support around the 79.75 level. Against the Swiss franc, the dollar saw gains during early morning trading before reversing later in the day. After reaching as high as 0.9480, the USD/CHF began falling, eventually dropping to the 0.9445 level.
As we begin to close out the week, dollar traders will want to note that a slow news day may result in exaggerated movements in the marketplace for seemingly no reason. Additionally, attention should be given to any announcements out of the euro-zone, especially with regards to the possible effects the current Greek political crisis may have on other indebted countries in the region, including Italy and Spain. Negative announcements could weigh heavily on riskier currencies, which may result in dollar gains throughout the European session.