The dollar rose to a new 2018 peak, extending its 2-1/2 week-long
rally as investors unwound short positions against the currency and bet
that the relative strength of the U.S. economy would feed through to a
stronger greenback.
Against a basket of currencies the dollar,
which has enjoyed a sudden reversal in fortunes as investors bet on more
Fed rate hikes and a slower pace of tightening in the euro zone, rose
0.4 percent to 92.968, having shrugged off Friday’s weaker-than-expected
jobs report.
The euro slid to below $1.19 versus the dollar,, down half a percent on the day and its weakest since Dec. 28.
In data from the euro zone’s largest economy Germany, industrial orders unexpectedly dropped for the third month running in March, suggesting factories there are shifting into lower gear.
The week ahead includes readings on the health of the Chinese economy and, U.S. inflation, and a Bank of England monetary policy meeting.
The soft German data supported euro zone government bond markets as investors continued to bet on caution from the European Central Bank.
The euro slid to below $1.19 versus the dollar,, down half a percent on the day and its weakest since Dec. 28.
In data from the euro zone’s largest economy Germany, industrial orders unexpectedly dropped for the third month running in March, suggesting factories there are shifting into lower gear.
The week ahead includes readings on the health of the Chinese economy and, U.S. inflation, and a Bank of England monetary policy meeting.
The soft German data supported euro zone government bond markets as investors continued to bet on caution from the European Central Bank.
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